What is the Chiron Clause?
The term ‘Chiron clause’ was recently used by the Prime Minister during a parliamentary debate. Although its use was political, this concept refers to a legal reality promoted by the Ministry of Finance and the Tax Agency: the right to tax error.
1. What is the ‘Chiron clause’?
It is a colloquial way of referring to the taxpayer's right to make mistakes without penalty, as long as there is no fraud or economic damage.
2. Current legislation
Currently, Article 27 of the General Tax Law (Law 58/2003) allows errors to be rectified with surcharges but without penalties. Following Law 11/2021, this possibility was made even more flexible in the case of errors already regularised in similar periods.
3. Is there specific legislation on the Chiron clause?
No, there is not. The Chiron clause as such is not included in the legislation in force.
There is a technical proposal (Proposal 3/2022 of the Council for the Defence of Taxpayers) to give it legal status and formally include it in the LGT and it has been suggested
its incorporation in articles 27 and 34 of the General Tax Law.
4. Comparison of the current and proposed situation
In the current situation:
- Voluntary errors are allowed to be rectified without penalty but with surcharges and interest.
- Tax history of the taxpayer has no influence.
- Only applicable before or during inspection if voluntary.
Future proposal:
- Rectification without penalty, surcharge and interest.
- Consideration of taxpayer's tax history.
- Applicable even after request, if there is no malice.
5. Conclusion
Although the right to error is already partially recognised in Spanish tax legislation, the so-called Chiron clause seeks to extend and consolidate it as a legal right of the taxpayer. At present, it is not formally regulated, but it has growing technical and jurisprudential support.
| Ley General Tributaria 58 2003 | 1041 KB |
