Portuguese Fiscal Cards:
What you don’t know can hurt you!
3) Other Concerns
by
Dennis Swing Greene
This is the third
and final article in a three part series about potential problems lurking
below the surface with Portuguese Fiscal Numbers:
1) The Basics
2) Potential Problems
3) Other Concerns
Incorrect identity information problems can be more than just an inconvenience
or a “hassle”. They can create liabilities that are both serious
as well as expensive. Just because you are unaware of the problem does not
mean that you won’t be held accountable.
Non-Resident Misrepresentation
If you are non-resident but receive your Rates bill (“IMI”) at your
home address (rather than via a Fiscal Representative), it is more than likely
that you are recorded as “resident”. It is not uncommon in the application
process for the person applying for your Fiscal Number to tick the “resident”
box, thereby sidestepping the responsibilities entailed in acting as a foreigner’s
Fiscal Representative.
The potential downside for you is that Finanças will expect annual
tax declarations on your worldwide income. Since by definition non-residents
are based in another jurisdiction, this alleged dual tax residency status
could prove to be an expensive nightmare. Appointing a proper Fiscal Representative,
as required by law, should prevent an otherwise avoidable assessment.
Marital Status
While not required specifically in the application, another piece of common
identity information that can change quickly is Marital Status. This condition
can have an immediate bearing on your tax position, most notably in your annual
income tax declaration. With the application of the “Marital Coefficient”,
couples, whether married or just cohabiting, inevitably pay less income tax
than two single individuals. Conversely, if you are separated, divorced or
have recently lost your spouse, change is in order. Documents with mismatched
information can lead to needless expense and delay in any dealings with officialdom.
Conclusion
Keeping your registered information current with Finanças is not only
wise but also clearly in your best interest. Your Tax Advisor or qualified
Fiscal Representative should be able to confirm your status and nip a problem
in the bud. In fact, this is just one of many ways that competent professional
service can prove to be a real money saver in the long run. Assuring the accuracy
of your data confirms the adage: “An ounce of prevention is worth a pound
of cure!”
(This is the final
article in the series)
Dennis Swing Greene
is an International Fiscal Consultant and Senior Partner at euroFINESCO. Private
consultations can be scheduled at our offices in Guia (Albufeira) and Lisbon
(Chiado). In the Algarve, call 289 561333 or in Lisbon, 21 3424210 or via
e-mail: info@eurofinesco.com, or on the internet at www.eurofinesco.com.
