We invite you to read the column written by our Tax Group Director, Andrea Bobadilla, on the main novelties of the new tax compliance law.
Last September 25, the tax compliance bill was approved and is about to be enacted.
In the new law there are key matters that seem to move in the right direction, such as the General Anti-Avoidance Rule (NGA) in court; the new governance of the Internal Revenue Service (SII); banking secrecy; the SII’s power of control; and the transitory windows, among others.
With respect to the control of the NGA in the courts, it is assured that it will provide legal certainty to the rights and guarantees of taxpayers, which allows real progress and contributes to combating evasion and avoidance, maintaining security in the tax system.
Meanwhile, the new governance of the SII is an important step forward to strengthen transparency and participation in decision making. However, it is key that the committees do not compromise efficiency or hinder the processes, so they must be oriented towards an agile management, in order for the tax system to operate effectively.
However, there is a rule that although, in my opinion, has not received the deserved attention, it is the one that will allow the repatriation of foreign capital, similar to the successful “super 8” of 2015. This transitory window offers taxpayers the possibility of regularizing assets and income located abroad, paying a single tax of 12%.
It is important to consider that this measure does not impose the obligation to repatriate the funds. Given that the term of validity is limited -until November 2024- and the information gathering process may be extensive, it is key to evaluate in advance to take advantage of this benefit, which would allow to regularize capitals at low cost and increase reinvestment in Chile.
Likewise, another new feature worth highlighting, which directly affects taxpayers’ pockets, is the extraordinary remission of interest and fines and the possibility of ending tax lawsuits by acknowledging debts.
The first of these measures allows the remission of interest and fines for overdue taxes until December 31, 2023, with payment facilities of up to 48 interest-free installments as long as the taxpayer complies with the agreement.
In the case of tax lawsuits pending before January 1, 2024, the possibility of terminating the same by means of debt acknowledgment is established, being able to access a total remission of interest and penalties if they acknowledge the adjusted tax debt and submit a request to the SII. This rule will not apply in cases with criminal action or lawsuits for abuse or simulation.
All in all, the approved bill seems to move forward in favor of combating tax avoidance and evasion, which is good news. However, the truth is that we expect that the application of the regulation and the compliance with these obligations will not be effective.
