Accounting and Registration Obligations

Heeping of books

Article 30 of the Commercial Code establishes that entrepreneurs must keep books, correspondence, documentation and supporting documents concerning their business, duly organized, for six years, from the last entry made in the books, except as established by general or special provisions.

This period does not coincide with the statute of limitations (4 years) of the Administration's right to determine the tax debt through the appropriate liquidation, so it may happen that the Administration's right to regularize a tax is prescribed, but the entrepreneur must still keep the accounting books and other documentation related to them.

Furthermore, it should be noted that the checks and investigations may extend to prescribed years when the facts have fiscal effects in non-prescribed periods (art. 115 LGT ) and that, in the case of the offset or deduction of certain tax credits, the Administration will have 10 years to verify the origin of the offset or deduction originated (art. 66 bis.2 LGT).

The businessperson's cessation of activity during the fiscal year does not exempt him/her from having to keep books and accounting records and, if the person has died, the duty will be the responsibility of his/her heirs. In the event of a company's dissolution, the liquidators will be obliged to comply with the above.