In its judgment no. 975/2025 (appeal in cassation 4579/2023), the Spanish Supreme Court has established an important criterion in the field of taxation: when a penalty is annulled because the preceding tax assessment has been declared invalid on formal grounds, the tax authorities may not initiate new penalty proceedings on the same facts and against the same taxpayer.
In other words, if a penalty has already been overturned because the tax assessment was procedurally incorrect (for example, because the taxpayer’s objections were not taken into account or because there were errors in the notification), the tax authorities cannot impose a new penalty on the basis of the renewed assessment.
The basic principle: “non bis in idem”
The Supreme Court recalls the important principle of ‘non bis in idem’ (Latin for: not twice for the same thing). This principle stipulates that a person may not be punished twice for the same offence, and that therefore no two separate penalty proceedings may be initiated on the same subject. This means that once a penalty has been annulled due to a formal defect in the assessment, no new penalty proceedings may be initiated.
What the Supreme Court has ruled
The Supreme Court was clear: when an assessment is annulled due to formal defects, the penalty also automatically lapses. That penalty disappears from legal reality, as if it had never existed. If the Tax and Customs Administration wanted to impose a new penalty, this would require a completely new procedure – and that is precisely what is prohibited by the principle of non bis in idem.
Please note: the Supreme Court emphasises that this does not apply if the penalty is adjusted within the same proceedings (e.g. only the amount is revised). In that case, there is no new penalty process, and the penalty can be enforced. The distinction therefore lies in the question of whether new proceedings are initiated, not only in the existence of a new penalty decision.
Practical consequences for taxpayers
This ruling is very important because it protects taxpayers against multiple attempts by the tax authorities to impose penalties after procedural errors. In concrete terms, this means:
- If a penalty lapses due to formal errors in the assessment, no second penalty can be imposed as long as this would require new proceedings;
- The tax authorities may correct the assessment themselves but may not impose a new penalty for the same facts;
- This ruling strengthens legal certainty and prevents endless prosecutions of the same taxpayer.
Conclusion
The Supreme Court ruling no. 975/2025 confirms that no new penalty proceedings can be initiated if the first ones have been annulled due to formal errors in the assessment.
This is an important safeguard for taxpayers: the tax authorities must act correctly from the outset and respect the rights of defence. If they fail to do so, they cannot rectify their mistakes at the expense of the citizen by imposing new penalties.
Selena Escandell Beutick