On 9 October 2026, the High Court of Justice of the Basque Country (TSJ PV) annulled a Tax Agency enforcement action seeking to collect a tax debt that originated before the self-employed individual’s insolvency proceedings, even though the tax assessment was finalized after the exoneration under the Second Chance Law (Ley de Segunda Oportunidad). The Court ruled that the debt was extinguished by the exoneration order, regardless of when the tax liability was quantified.
Key Takeaways
- Debt Origin Date Controls: If the taxable event occurred before the insolvency filing, the debt is subject to exoneration, even if the Tax Agency issues the settlement later.
- Protection Scope: The Second Chance discharge covers all pre-concursal liabilities, including tax debts, provided they are not expressly excluded (e.g., public law debts with specific exceptions).
- Enforcement Bar: Once exoneration is granted, the Tax Agency cannot pursue collection via embargo or payment orders; any such action is void.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement