Review of extraordinary benefits for cessation of activity regulated in article 8 of Royal Decree-Law 11/2021, of May 27

Any means of notification will be admitted to present the allegations that it deems appropriate. However, at Requests received by this means will provide you with immediate acknowledgment of receipt and the possibility of monitoring the processing status online. Furthermore, allegations received by this means will be resolved on a preferential basis.

However, you can also send us your allegations by any other means (recommending that it be a means that reliably certifies delivery).

Consult the address of your nearest management center: Fraternidad.com/centros .

If you are the advisor of the self-employed worker and you have a digital office user, we recommend that you complete the allegations process by accessing the following link:

Fraternidad.com/OficinaDigital

In any other case, if you do not yet have a Digital Office user, you can process allegations through the following address:

Fraternidad.com/alegacionesCATACOVID

Once you have accessed our Digital Office, you can send us your allegations by following the steps described in this manual.

During the review the following points will be analyzed:

1. Having been a recipient, as of May 31, 2021, of any of the cessation of activity benefits provided for in articles 6 and 7 of Royal Decree-Law 2/2021, of January 26 ( POECATA 3 or PECANE 2.2 ) and that they have not been claimed in the subsequent review carried out.
2. Be registered in the Special Social Security Regime prior to April 1, 2020.
3. Be up to date with the contributions with Social Security at the time the accrual of the benefit begins or have a deferral recognized prior to said date.
4. Anyone who has one or more workers under their care must prove, at the time they requested the benefit, the compliance with all labor and Social Security obligations that they have assumed.
5. Prove in the 2nd ^or and 3rd ^er quarter of 2021 taxable income from self-employment activity lower than that in the first quarter of 2020 .
6. Not have taxable net income from self-employed activity in the 2nd ^or and 3rd ^er quarter of 2021 exceeding €6,650.

One of the requirements to access PECANE 2.3 is that as of May 31, 2021, one of the cessation of activity benefits provided for in articles 6 and 7 of Royal Decree-Law 2/2021, of January 26 (POECATA 3 or PECANE 2.3) had been received.

This incident can be due to various reasons, the most common being the following:

• You were paid any of the aforementioned benefits, POECATA 3 or PECANE 2.2, but you were discharged from the Special Regime before May 31, 2021.
• You requested the termination or renunciation of the benefit prior to May 31, 2021.
• You became a retirement or permanent disability pensioner (incompatible with the development of your self-employed professional activity) prior to May 31 of 2021.
• He had a deferral of debts for contributions recognized by the General Treasury of Social Security and during the period 02/01/2021 to 05/31/2021 he failed to comply with any of the the repayment terms and did not pay off the remaining debt within the following 30 days.
• After the recent review of the provisionally recognized POECATA 3 / PECANE 2.2, some incident has been detected that has prevented recognition that the benefit was correctly recognized or paid until 05/31/2021.

In this case, you may provide any documentation admitted by law that you consider can prove that you were a beneficiary of POECATA 3 or PECANE 2.2 until 05/31/2021 and that said recognition has not been altered after the review of the provisional agreement.

It should begin by clarifying that affiliation to Social Security is the responsibility of the General Treasury of Social Security (TGSS) and that the Mutual Fund can only access to verify the information, but cannot modify it.

Within the verification acts in the review of this benefit, the Mutual Fund has agreed to verify the affiliation status that, today, appears in TGSS and it has been verified that there was no record of registration in the Special Regime prior to April 1, 2020 (or who was discharged from said Special Regime - for more than 1 day - between April 1, 2020 and the date on which the benefit accrued).

Please note that, due to the time elapsed, it could be that since you requested the benefit there has been some modification in your affiliation that affected the provisional recognition that was made to you.

In these cases, you must request a certificate from the TGSS indicating that as of April 1, 2020 you were registered in the Special Regime and that said registration has not been subsequently revoked. Alternatively, it would be enough for the TGSS to regularize the information in its database and the Mutual Fund would agree to verify it directly.

In any case, you can always provide any documentation admitted by law that you consider can prove the registration requirement in the Special Regime.

First of all, we must indicate that the debt information has been obtained from the databases of the General Treasury of Social Security (TGSS) and that the Mutual Fund only has consultation access to said data, and cannot clarify or modify said information.

To prove the non-existence of the debt, there are the following alternatives:

1. Provide a certificate from the TGSS that certifies that on 06/01/2021 you were up to date with all debts with Social Security.
2. Provide a resolution from the TGSS to defer the debt that may have been recognized as of 06/01/2021. Said resolution must be prior to 06/01/2021 and be accompanied by documentation that proves having complied, in the period 06/01/2021 to 09/30/2021, with the amortization periods indicated in the aforementioned resolution.
3. If during the receipt of the benefit you received an invitation to pay the fees owed, you may provide documentation that justifies that you were up to date with said fees within 30 days of receipt.

Otherwise, said invitation will have been made to you along with the hearing process and, therefore, you will have 30 calendar days to pay all the debt, prior to 06/01/2021, that you owed with Social Security. If you pay said debt, you must provide proof of payment of the debt and a certificate from the TGSS that you are up to date with payment as of 06/01/2021.

Important: For the purposes of catching up on payment of the debt prior to 06/01/2021, the recognition of a debt deferral after said date will have no effect (only the effective payment of the debt will have that effect).

In any case, you can always provide any legally accepted documentation that you consider can prove that you were up to date with your Social Security contributions.

First of all, we must indicate that this information has been provided to us by the General Treasury of Social Security (TGSS) itself and that the Mutual Fund does not have the option of verifying these details.

In these cases you must request from the TGSS a certificate indicating that at the time of requesting the benefit (PECANE 2.3) you were up to date with the labor and Social Security obligations of the workers under your care.

In any case, you can always provide any legally accepted documentation that you consider can prove that you were up to date with your Social Security contributions.

This may be due to the fact that the Mutual Fund, with the information at its disposal, has not been able to prove that in the 2nd and 3rd ^er quarter of 2021 it obtained taxable income from self-employment activity that was lower than that obtained in the first quarter of 2020.

You may prove compliance with this requirement by providing tax and/or accounting documentation that reliably proves the reduction in income required by the standard, to do so you must provide the following form:

This form, depending on the type of taxation, must be accompanied by the following documentation:

1. Taxation by direct estimate:

General rule: you must only present the 303 forms corresponding to the 1st quarter of 2020 along with those of the 2nd and 3rd ^er quarter of 2021.

Exceptions: (not required to present form 303 as a natural person).

• Administrator and/or partner: you must present your company's form 303 corresponding to the 1st quarter of 2020 along with those of the 2nd and 3rd ^er quarter of 2021; accompanied by documentation that proves their connection with it (partner's book or registered shares registered in the commercial registry, company deeds or any means of proof admitted by law). If you are an administrator of several companies, you must present this documentation for each of them.
• Any other person not obliged to present form 303:
  • Obligated to present form 130 : must present form 130 corresponding to the 1st quarter of 2020 along with those of the 1st ^er , 2nd and 3rd ^er quarter of 2021.
  • Not required to present form 130: you must present registration form 036 and the sales and income book corresponding to the 1st ^er quarter of 2020 and the 2nd and 3rd ^er quarter of 2021.

 

2. Taxation by objective estimate:

They must present model 131 corresponding to the 1st quarter of 2020 and the 2nd and 3rd ^er quarter of 2021, along with the sales and income book corresponding to said periods (1Q2020 and 2Q+3Q 2021).

Suggestion: To speed up the resolution of your file, those who have to present the sales and income book are recommended to provide it in the Excel format attached to the form (although they can present it in any other format or means of proof accepted by law).

 

Equivalent documentation in regional territories

• Navarra: F69 models corresponding to the 1st ^er quarter of 2020, along with the 2nd and 3rd ^er quarters of 2021.
• Euskadi: 303 models corresponding to the 1st ^er quarter of 2020, along with the 2nd and 3rd ^er quarter of 2021.

Alternatively to the previous methods, you may also justify access to the benefit by alleging and documenting that the activity you carried out and justified its inclusion in the Special Regime was different which the Mutua has evaluated in its review and that it was really one of the activities affected by the reduction of more than 7.5% in the average daily number of active workers affiliated with the Social Security system, during the period of receipt of the benefit, in relation to the 2nd and 3rd quarter of 2019 (art. 8.10.a of the Royal Decree-Law 11/2021).

In this case, you must regularize your situation in the TGSS and provide the following documentation:

• TGSS document that certifies the new activity and that covers the period 06/01/2021 to 09/30/2021.
• Economic activities tax where the year 2021 is reflected or Certificate where the activities of 2021 are reflected.

This may be due to the fact that the Mutual Fund, with the information at its disposal, has not been able to prove that during the 2nd and 3rd ^er quarters of 2021, net returns greater than €6,650 were not obtained.

You may prove compliance with this requirement by providing the following form:

Said form, depending on the taxation modality, it must be accompanied by the following documentation:

1. Taxation by direct estimate:

General rule: they should only present the 130 forms corresponding to the 1st ^er , 2nd and 3rd ^er quarter of 2021.

Exceptions: (who are not required to present form 130).

• Administrator and/or partner: you must present form 190 and the list of all payrolls for the year 2021. If you are an administrator of several companies, you must present this documentation for each of them.
  Those workers who do not have payrolls must justify the performance with the tax models (form 303 of the 2nd and 3rd ^er quarter of the company and model 200 of the fiscal year 2021), as well as the list of income and expenses corresponding to the 2nd and 3rd ^er quarter of 2021.
• Any other person not required to present the form 130: you must present registration form 036, the sales and income book, along with the purchase and expense book corresponding to the 2nd and 3rd ^er quarter of 2021.
2. Taxation by objective estimate:

You must present the model 131 corresponding to the 2nd and 3rd ^er quarter of 2021, the sales and income book, together with the purchase and expense book corresponding to the 2nd and 3rd ^er quarter of 2021.

Suggestion: To speed up the resolution of your file, those who have to present the sales and income books, along with those of purchases and expenses , it is recommended that they provide it in the Excel format attached to the form (although they can present it in any other format or means of proof accepted by law).

 

Equivalent documentation in provincial territories

• Navarra: Book of income and expenses of the 2nd and 3rd ^er quarter of 2021.
• Euskadi: Form 140 of daily record of operations for 2021, in addition to the income and expense book for the 2nd and 3rd ^er quarter of 2021.

Alternatively to the previous methods, you may also justify access to the benefit by alleging and documenting that the activity it carried out and justified its inclusion in the Special Regime was different from the one that the Mutual Fund has evaluated in its review and that it was really one of the activities affected by the reduction of more than 7.5% in the average daily number of active workers affiliated with the Social Security system, during the period of receipt of the benefit, in relation to the 2nd and 3rd ^er quarter of 2019 (art. 8.10.a of Royal Decree-Law 11/2021).

In this case, you must regularize your situation in the TGSS and provide the following documentation:

• TGSS document that certifies the new activity and that covers the period 06/01/2021 to 09/30/2021.
• Economic activities tax where the year 2021 is reflected or Certificate where the activities of 2021 are reflected.

This may be due to the fact that the Mutual Fund, with the information at its disposal, has not been able to prove that in the 2nd ^or and 3rd ^er quarter of 2021 it obtained tax-countable income from self-employment activity that was lower than that obtained in the first quarter of 2020; nor that during the 2nd ^or and 3rd ^er quarter of 2021 net returns greater than €6,650 have not been obtained.

In these cases, the documentation related to the two previous sections must be submitted (although the form does not have to be submitted in duplicate, since the same form will serve to prove both situations).

There are several reasons that may result in a higher benefit being paid than what should have been due. Among them, the most common are the following:

1. Overlapping with other Social Security benefits: this CATA.COVID-19 benefit is not compatible with the receipt of other Social Security benefits which, in its opinion, time, were not compatible with the development of the activity on one's own account. If during the receipt of this CATA.COVID-19 benefit you also benefited from other Social Security benefits (temporary disability, birth and care of a minor - former maternity/paternity -, risk during pregnancy or breastfeeding, permanent disability, retirement started during the receipt of the benefit,...) the days in which both benefits coincided simultaneously, will be deducted and claimed from this CATA.COVID-19 benefit.
   
   How to prove that there is no incompatibility with the status of retirement pensioner?   ( Click here for more information )
    
2. Incompatibility with work performed as an employee and/or unemployment: this CATA.COVID-19 benefit is incompatible with performing work as an employee or with receiving unemployment benefits.
    
3. Incompatibility with the returns received from a company: this CATA.COVID-19 benefit is incompatible with the returns you may have received from any of the companies in which you participate or manage
   
   If during the receipt of this CATA.COVID-19 benefit you have received income from any of the companies in which you participate or manage, the months in which you have received said income will be incompatible with the receipt of the CATA.COVID-19 benefit and will be deducted from it and claimed.
    
4. Incompatibility with the exercise of another self-employed activity: this CATA.COVID-19 benefit is incompatible with the exercise of another self-employed activity, unless the income obtained in all professional activities carried out during the 2nd ^or and 3rd ^er quarter of 2021 do not exceed €6,650 and none of said activities have started after the accrual of the CATA.COVID-19 benefit.
   
   If the requirement was met that the net income in the 2nd ^or and 3rd ^er quarter of 2021 did not exceed €6,650, but some of the professional activities began after the accrual of the benefit, those that were paid after the start of the new activity will be declared as benefits unduly received.
    
5. Differences in the regulatory base: If during the review any difference in the regulatory base applied had been detected, the benefit would have been recalculated in accordance with the correct regulatory base and They would claim any differences that may exist.
    
6. Differences in the daily amount paid: this may be due to having incorrectly applied the percentages that the rule established based on your family situation. The rule established that the amount of the benefit would be 50% of the regulatory base for those who were the only beneficiaries of this CATA.COVID-19 benefit within their family or cohabitation unit; and 40% on the regulatory basis for the rest of the cases (more than one beneficiary of this or another cessation of activity benefit).
    
7. Differences in the days of benefits paid. If during the review it was detected that the benefit was paid for more days than would have been due, the benefit would be recalculated and the differences would be claimed. The differences in benefit payment days may be due to different situations, in addition to those stated in sections a), b), c) and d) such as:
   
   -  The accrual of the benefit having been recognized since 06/01/2021, in applications received abroad of term.
   -  Having paid the benefit after leaving the Special Regime.
   -  Having paid the benefit after acquiring the status of pensioner due to retirement or permanent disability.

When the hearing process indicates that incidents have been detected on the start date of the benefit, it means that during the review of the CATA.COVID-19 benefit it has been determined that the payment of the benefit began on a date earlier than what should have corresponded (based on the information in the file).

The start date of this CATA.COVID-19 benefit depended on the date of submission of the application. Those applications submitted until 06/21/2021 (inclusive) accrued the benefit from 06/01/2021, the rest accrued the benefit from the first day of the month following that of their presentation.

You may justify access to the benefit from a date other than that calculated by the Mutual Fund by providing any legally accepted documentation that proves the submission of your application on a date other than the one assessed by the mutual insurance company.

When the hearing process indicates that incidents have been detected on the end date of the benefit, it means that during the review of this CATA.COVID-19 benefit it has been determined that the payment of the benefit was finalized on a later date than it should have corresponded (based on the information in the file).

The main causes that may lead to differences in the end date of the benefit are the following:

• Have paid the benefit after it was removed from the Special Regime.
• Having paid the benefit after acquiring the status of pensioner due to retirement or permanent disability.

You may justify access to the benefit until a date other than that calculated by the Mutual Fund in the review of this CATA.COVID-19 benefit, providing any legally accepted documentation that refutes the facts previously stated, such as:

• Updated working life report, or TGSS certificate, stating that you did not leave the special Social Security regime in the period 06/01/2021 to 09/30/2021.
• Certificate from the INSS stating that the status of a retirement pensioner or permanent disability has not been recognized in the period 06/01/2021 to 09/30/2021.

How to prove that there is no incompatibility with the status of retirement pensioner?   ( Click here for more information )

During the review process of the provisionally recognized benefit, the Mutual Fund, based on the information provided to it by the National Social Security Institute (INSS), has detected that the status of retirement or permanent disability pensioner could be recognized after the date on which this benefit began to accrue.

In order to prove that you have not acquired the status of retirement pensioner or permanent disability, you must provide a certificate from the INSS that certifies these extremes.

How to prove that there is no incompatibility with the status of retirement pensioner?   ( Click here for more information )

If in the hearing process it has been indicated that possible overlaps in Social Security benefits have been detected, it is because the information provided to the Mutual Insurance Companies by the National Social Security Institute (INSS) has detected that they have been a beneficiary of some other Social Security benefit incompatible with self-employment.

Given that the Mutual Fund cannot autonomously verify this information, to refute it, you must provide along with your allegations a certificate issued by the INSS reporting the Social Security benefits that you may have received in the period 06/01/2021. 09/30/2021 clearly indicating: type of benefit, start date and end date.

In the event that you have not been a beneficiary of any benefit, you must provide a certificate from the INSS that expressly indicates that you have not received any Social Security benefit in the period 06/01/2021 to 09/30/2021 (except, obviously, for this benefit CATA.COVID-19).

If you belonged to the Special Regime of the Sea, in any case, a certificate from the Social Institute of the Navy will be necessary in which it is expressly indicated that you were not a beneficiary of aid for fleet paralysis in the period 06/01/2021 to 09/30/2021 or, if you received them, the dates exact times in which they were perceived (start and end of help).

If in the hearing process it has been indicated that possible incompatibilities have been detected with the performance of employed work or with the receipt of unemployment benefits, it is because in the information provided to the Mutuals by the General Treasury of Social Security (TGSS) and in the verifications that the Mutual has carried out autonomously these overlaps have been detected in the period 06/01/2021 to 09/30/2021.

You should know that the extraordinary cessation of activity benefit that was paid to you is incompatible with employed work. Therefore, the days registered in the RGSS for performing work as an employee are considered incompatible with the receipt of the CATA.COVID-19 benefit and are declared as improperly paid and, therefore, will be claimed.

Alternatives to respond to this section of the hearing procedure:

• If you did not do any freelance work third party: you must provide, along with your allegations, any legally accepted documentation that refutes the facts previously stated, such as:
  • An updated certificate of working life issued by the TGSS.
  • A certificate from the State Public Employment Service (SEPE) stating the unemployment benefits received in the last 4 years or which expressly indicates that you were not a recipient of unemployment benefits in the period 06/01/2021 to 09/30/2021.

It is established that the receipt of this CATA.CAVID-19 benefit will be incompatible with the development of any new activity that begins after the accrual of the benefit.

Given that the mutual insurance company does not have access to this information, information is required to prove that it did not carry out any activity after the benefit accrued. For these purposes, you must provide us with the 2021 Census of Business Activities.

If in said census any activity appears that you did not carry out, you may provide any evidence admitted by law that proves that you did not really carry out said activity despite it appearing related in the census of business activities provided.

It is established that the receipt of this CATA.CAVID-19 benefit will be incompatible with the receipt of any return received from a company in which one participates or manages.

From the data cross-checks carried out with the administration, it has been identified that he could have been linked to a company during the receipt of the CATA.COVID-19 benefit.

Since the mutual insurance company does not have access to this information directly, it is required to provide documentation to prove compliance with this requirement.

Alternatives to respond to this section of the hearing procedure:

• If during the receipt of the benefit was not linked to any company: must provide, along with its allegations, a negative certificate issued by the Commercial Registry stating that between 06/01/2021 and 09/30/2021 it did not maintain a corporate relationship with any company, nor as an administrator (failing that, they may also provide any documentation admitted by law that distorts the facts previously stated).
• If during the receipt of the benefit you managed or maintained a corporate relationship with any company , along with your allegations you must provide:
  • A certificate issued by the Commercial Registry stating the companies that it managed or with which it maintained some type of corporate relationship between 06/01/2021 and 09/30/2021.
  • A certificate from each of the companies certified by the Commercial Registry, indicating the returns received from each of them in each of the months in which they received the CATA.COVID-19 benefit.

The stable rule is that this CATA.COVID-19 benefit will be paid in one amount or another depending on whether within the family or cohabitation nucleus there are one or more beneficiaries of this benefit. If you were the only recipient of the benefit within your family or cohabitation unit, you would have the right to receive the benefit in a daily amount that would be calculated by applying 50% to the regulatory base that corresponded to you. However, if in your family or cohabitation unit in addition to you there had been another member who received the same benefit, everyone should have received the benefit in a daily amount calculated on 40% of the regulatory base that corresponded to each one.

The calculation of the amount of the daily benefit that was paid was made based on the information that was provided in the application for the benefit and the responsible declaration that was attached to it.

If after reviewing this benefit you have received a hearing procedure in which it is indicated that the percentage applied to the regulatory base was 50%, without being proven that any of the cohabitants in your 2021 address had been a recipient of this same extraordinary benefit due to cessation of activity, you will need to prove this situation.

To prove that you are the only beneficiary of this CATA.COVID-19 benefit within your family or cohabitation unit, you must provide the following documentation:

• Historical collective registration certificate or any proof admitted by law that accredits the people who made up the family or cohabitation unit on the start date of the benefit.
• Sworn declaration that no other member of the family or cohabitation unit was a beneficiary of this same benefit.

When the hearing process indicates that incidents have been detected on the end date of the benefit, it means that during the review of this CATA.COVID-19 benefit it has been determined that the payment of the benefit was made for an amount greater than that which would have corresponded.

In order to review your benefit again, you must provide, along with your allegations, a copy of the Economic Activities Tax reflecting the year 2021 or a Certificate reflecting the activities of 2021, to verify the activity carried out in that period.

Once the deadline granted in the hearing process has passed, the Mutual Fund will proceed to issue a final resolution evaluating the allegations and/or additional documentation that it may have received.

With the information in the file, it will issue one of the following definitive resolutions:

1. Resolution that elevates the provisional agreement to final: it will be issued when the allegations and/or documentation provided have allowed the detected incidents to be resolved favorably. In this case, access to the benefit and also the amounts paid will be declared correct.
2. Resolution that annuls the provisional agreement: if, despite the allegations and/or documentation provided, they do not allow clarification of the incidents that prevented recognition of access to the benefit and, therefore, to the amounts received. In these cases, a resolution will be issued that revokes the provisional agreement, declares the amounts paid as undue benefits and claims said amounts in their entirety.
3. Resolution that modifies the provisional agreement: will be issued when the allegations and/or documentation provided have made it possible to resolve the incidents that could prevent access to the benefit, but were not sufficient to determine that the total amount paid was correct. In these cases, a favorable resolution will be issued in relation to the right of access to the benefit, but it will declare that part of the benefits paid were improper, proceeding to claim the amounts paid in excess.

As informed at the end of the resolution that has been sent to you, if you are not satisfied with said resolution, you may file a prior claim through judicial channels.

The period to submit the prior claim is 30 business days (that is, excluding Saturdays, Sundays and holidays) counted from the date on which you received the resolution.

Given that this prior claim is mandatory for the initiation of subsequent judicial proceedings, we recommend that you present it by some means that reliably accredits its delivery.

Once the deadline granted in the hearing process has passed, the Mutual Fund has no obligation to analyze the allegations or documentation received. However, if your file has not yet been resolved, the Mutual Fund, in order to resolve it with as much information as possible, will analyze the documentation received (even after the deadline).

On the contrary, if the Mutual Fund receives your allegations and/or documentation once the resolution has been issued, if this is contrary to your interests, you must present a prior claim (in which you may incorporate the allegations and/or documentation that the mutual company could not assess when issuing the resolution).