Returns of Undue Revenue or in excess of what is due to the State Budget. It consists of offering a generalized vision on the main causes and the necessary procedures to be carried out by natural and legal persons, to make claims to the State Budget when they have contributed, for any reason, undue income or in excess of what is due to the budget level that it corresponds.
Mention is also made of the legislation that regulates the process of refunds of undue or excess income due to the State Budget and, in addition, it specifies the entities empowered to request them directly from the municipal directorates of Finance and Prices.
On the other hand, the pertinent details are made when it comes to returns of undue income or excess of what is due in convertible pesos (CUC), because the process has a different treatment than that of returns in pesos (CUP).
The Decree-Law No. 192 “On the Financial Management of the State “, promulgated by the State Council of the Republic of Cuba in April 1999, is composed of several systems interrelated, among which is the Treasury System .
For a better understanding on the subject of the title it is necessary to say that within the systems that make up the State Financial Administration there is also the “ Tax System ”, established by Law No. 73 dated August 4 , 1994 , which has as an objective to establish taxes and the general principles on which the tax system of the Republic of Cuba is based and is made up of taxes, fees and contributions that are subject to natural and legal persons of Cuban nationality as well as foreigners, the latter , in compliance with a tax obligation generated in the territory of the Republic of Cuba.
The income returns are based on resolutions and normative work procedures, among which is the “Procedure for the return of undue or excess income due to the State Budget”, which can be executed in both pesos (CUP) and in convertible pesos (CUC).
Natural and legal persons, depending on the activity they carry out and / or the procedures to be formulated, are obliged by the aforementioned Law to contribute to the State Budget the taxes, rates and contributions that correspond to them and it is precisely in this action of the contribution, where there are the causes that cause the reimbursement of undue or excess income.
Summary
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- 1 Most frequent causes causing improper income returns
- 2 Entities empowered to order income returns
- 3 Procedure to request refunds of undue or excess income due
- 1 III.1 Returns in pesos (CUP)
- 2 III.2 Returns in convertible pesos (CUC)
- 4 Registration and Information System
- 5 On the conservation and archiving of documentation
- 6 Source
I. Most frequent causes that cause improper income returns
When the contributions to the State Budget are made by natural and legal persons, there are a series of circumstances that subsequently cause the return of income, which, among others, are the following:
- Calculation errors in the determination of taxes, contributions and contributions to which natural and legal persons are obliged.
- Claims made for fines for contraventions and for administrative infractions, declared with or in part by the competent bodies.
- Duplication in the payment of both personal and institutional fines.
- Returns for various reasons related to the Housing Offices.
- Returns to natural or legal persons for amounts collected by the offices of the General Customs of the Republic.
- Returns of bonds imposed on natural persons by the competent institutions.
- Returns for reform and appeal resources.
- Others that may be authorized by the competent bodies.
Refunds of income can be established by tax determinations through audits carried out by the competent bodies and, at the request of natural and legal persons, upon realizing that they have made improper income or in excess of what is due to the State Budget.
The action to claim amounts unduly entered into the State Budget by natural and legal persons prescribes after one year has elapsed from the date the contribution was made.
II. Entities empowered to order income returns
The Resolution No. 276 , dated 28 of September of 2010 , issued by the Ministry of Finance and Prices , empowered to order refunds of income:
- The National Tax Administration Office ( ONAT ).
- The Control and Collection of Fines ( OCCM ) offices of the Finance and Prices Directorates, on behalf of the fines imposing organizations.
- The offices of the General Customs of the Republic ( AGR ).
- Others that may be expressly authorized.
III. Procedure to request refunds of undue or excess income due
III.1 Returns in pesos (CUP)
When establishing by the natural or legal person the possibility of having unduly paid an amount to the State budget, you must submit the corresponding claim in writing to the competent body, for example:
- Before the corresponding Tax Administration Office (ONAT) if it concerns taxes, fees or contributions.
- Before the bodies authorized to impose fines for violations of Decree-Law No. 99 “On Personal Contraventions “.
- Before the offices of the General Customs of the Republic (AGR) if it concerns customs fines, customs duties, customs services, etc.
All the documents that justify the amount or amounts unduly entered into the State Budget must be attached to the claim brief.
The empowered bodies, once they receive the documents that support the requests for claims of undue income or in excess of what is due to the State budget, check the origin or not of the return and, if appropriate, issue the corresponding Resolution declaring it with place in whole or in part, thus ordering that the return of income to the natural or legal person as appropriate be effective.
Natural and legal persons, once they receive the Resolution ordering the return of income, present it in the Treasury area of the Municipal Directorates of Finance and Prices, which are authorized to issue the corresponding payment instrument, after review , acceptance, control, registration and subsequent delivery to the beneficiaries according to the established procedures; in the case of natural persons, by check and, if they are legal persons by bank transfer in favor of their bank account.
Refunds of undue or excess income may be charged to the Central, Provincial or Municipal Budgets, depending on the level at which the contribution was made.
III.2 Returns in convertible pesos (CUC)
For the execution of income returns in convertible pesos (CUC), the Treasury Department of ONAT Central manages two bank accounts:
- Counter value operations account for income returns in convertible pesos (CUC).
- Account for income returns in convertible pesos (CUC)
To claim the income returns in this currency, the same procedures are established for pesos (CUP) regarding the request, analysis of its origin and issuance of the Resolution ordering the return of income.
The difference is that the Treasury areas of the Municipal Directorates of Finance and Prices, on the basis of the amount ordered to be returned by Resolution, must send a bank transfer for the amount of the return, in Cuban pesos (CUP) as a counter value, with all the details of the beneficiary, in favor of the “Counterparty Operations Account for income returns in convertible pesos (CUC)” administered by the General Treasury Directorate of the Ministry of Finance and Prices.
Once the General Treasury Directorate verifies that the aforementioned amount has been credited to the bank account, it orders to transfer to the bank branch of the beneficiary of the return the amount in convertible pesos (CUC), affecting the “Account for Income Returns in convertible pesos (CUC) ”, in order to conclude the operation.
IV. Registration and Information System
In all the Treasury areas of the Municipal Finance and Price Directorates, according to the established regulatory procedures, there are records for the control of income returns in its three moments, that is, receipt, payment instrumentation and its final completion in the Bank branch.
- The reception process refers to the moment in which the Treasury area receives the Resolution ordering the return, and proceeds to give it entry in the registry designed for such purposes.
- The instrumentation of the payment consists of the moment in which the Treasury area prepares the bank transfer or the check for the amount of the return; in the first case if it is a question of returns to legal entities and, in the second case, for natural persons.
- The return payment is materialized when the corresponding bank branch credits the beneficiary’s bank account with the amount of the return, in the case of legal entities and, in the case of natural persons, when the beneficiary presents the check at the bank branch and the latter gives him the cash that he has been ordered to return.
They also have information models that allow the necessary information to be collected on income returns from municipalities, provinces and the nation, with the aim of periodically reporting their execution at the corresponding levels.
V. On the preservation and archiving of documentation
The Resolution No. 276/2010 , in Regulatory Procedures which form part of the same, a period of time of five (5) years from the date, for conservation in the different levels is established, the documents, records and models that give rise to the operations related to income returns collected by the State Budget.
