Here’s the translation into American English:
Recently, the Supreme Court of Spain issued a ruling that transforms the approach to the tax liability of company directors. This new decision indicates that tax authorities can no longer assign subsidiary liability to directors solely based on their position; they must demonstrate that there was negligent or fraudulent conduct on the part of these individuals.
This change is seen as a step forward in protecting directors, who until now could be held liable without the need to prove inappropriate behavior. The revised regulations require the Tax Administration to justify in detail how the tax violation occurred, thus preventing the assignment of liability without concrete evidence.
Among the most significant updates in the ruling STS 3465/2025 is the obligation to specifically motivate each case and the reversal of the burden of proof, which now falls on the Administration. This means that the director is not obligated to prove their innocence; rather, it will be the Administration’s responsibility to present compelling evidence to support their accusation.
The implications of this ruling are extensive. Firstly, it reinforces the legal certainty of directors, reducing the risk of being automatically deemed responsible. It also allows them to challenge agreements where negligent actions are not adequately detailed, thereby facilitating a more effective defense. Furthermore, it emphasizes the importance of retaining documentation and detailed records that demonstrate due diligence in tax management.
Business leaders and managers must take this new legislation into account and adapt to it, maintaining a careful approach to managing their responsibilities. In the face of any claims, it is essential to seek the advice of experts in tax law to understand their rights and defense options. This new legal framework will undoubtedly change how the tax liability of directors is addressed in the future.
Referrer: MiMub in Spanish