The management of taxes normally starts with the statement (settlement of payment), which the taxpayer formulates and finalises with a settlement that the administration practices, or otherwise, when the limitation period has expired.
Although our tax system does not define the concept of settlement, strictly speaking it can be said that, it is the administrative act of application of the tax, by virtue of which the Administration determines provisionally or permanently the amount of the tax liability that the taxpayer must pay. The settlement ends the management procedure and if properly notified, requires the taxpayer to pay the tax debt.
Our tax system has become widespread practice of so-called settlement of payments. However, the settlement is to be understood exclusively, as the practicing Administration and nothing else.
By practicing settlements, the administration is not required to conform to the information provided by taxpayers in their statements, but to proceed with the notification, expressing its essential elements, the remedies against them and the place, time and form payment of the tax debt. In addition, if the settlement involves an increase in base declared by the taxpayer, such increase should also be notified with specific indication of the facts and additional elements that motivate it (see section 6.2).