In the event of non-compliance, both civil and criminal penalties will be applied, which may be imposed on the company and those involved.
On january 1, 2024, the Corporate Transparency Act became effective, which establishes new reporting obligations for a broad spectrum of U.S. companies, as well as for Chilean taxpayers that have companies incorporated and registered in the United States.
Under this law, companies designated as “reporting entities” must provide details about the entity itself, its beneficial owners (the controlling entity) and, in some cases, the requester.
All information collected will be stored in a database called “FinCen”, belonging to the Financial Crimes Enforcement Network. It is important to note that this database will not be publicly accessible, which means that it will not be possible to share information with other states.
Registration only needs to be done once and does not need to be done annually. However, in case of changes in the company, a 30-day period is available to report the changes.
In case of failure to comply with this obligation, either by not filing the registration statement or by providing incomplete or false information, both civil (up to $500 per day) and criminal (up to two years imprisonment) penalties will be applied. These penalties may be imposed on both the company and the individuals responsible.
At az Miami, a commercial hub that combines the legal and business worlds, we have all the tools to support our clients in Chile in the above mentioned procedures and other matters related to their soft landing processes in the USA.
For more information on these topics you can contact our Tax team:
Rodrigo Albagli | Partner | ralbagli@az.cl
Álvaro Rosenblut | Partner | arosenblut@az.cl
David Ancelovici | Director Tax Group | dancelovici@az.cl
Pablo Trucco | Senior Associate | ptrucco@az.cl
Elisabet Pinto | Associate | epinto@az.cl
Valentina Herrera | Associate | vherrera@az.cl
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