The tax authority has an own legal position and prerogatives. There is no difference in the enforcement of embargoes. When the debtor does not comply with his obligation in the voluntary period, another period commences, called the enforcement period. This period also includes a voluntary timeframe for the debtor to pay the necessary payment with the surtax. Once the second time limit has concluded, the procedure of seizure of real estate takes place. This occurs by the embargo notification.
Is there any limit with which the tax authority has to comply in the embargo process?
One general limit established in the Civil Code is for those assets essential for the taxpayer and the people who are dependent on him, to have a reasonable dignity in subsistence.
Yet there is another and a more concrete limit: the Minimum Wage. We will have to sum up every rent we receive, as a worker or as a self-employed or others. Any embargo beyond this limit will be annulled and void.
Are the financial entities compelled to enforce the embargo in any situation?
The financial entities play a leading role in the embargo. They are a necessary collaborator for the enforcement of the embargoes, as most of them are produced in deposits and funds of banks.
The law compels them to enforce the embargo orders in “a strict sense”. If not, it may have a sanction in which turns to have a joint liability with the taxpayer (with the surtaxes and interests included).
The only way the financial entity may be opposed to the embargo will be a failure either in the nature of the property seized or in the formalities under which the embargo has been enforced.
Moreover, it is very frequent the client having his money in many different entities, and having an embargo in every one by the same concept, without any need. To deal with this risk, the taxpayer will have to take measures to stop it, as it is not possible for the entities to know if there has been a transgression of the limits in the law (because it would be necessary to sum all the incomes in the assets of the debtor, and apply the limits to the total amount). Thus, the financial entities will enforce the embargo even this contingency may occur.
The taxpayer suffering from the consequences of a duplicated embargo in his different deposits will only be able to claim his rights to the competent trying to enforce the embargo. It will have to be done by him, justifying the reason for his complaint.