The project seeks to improve the efficiency of the tax system and modernize its administration.
The Congress approved the Tax Obligations Compliance Bill, and it is about to be enacted into law. Once published in the Official Gazette, it will become law.
The main key matters approved of this bill are:
- Tax Code:
General Anti-avoidance Rule (NGA).
The judicial control of the General Anti-avoidance Rule (NGA), which allows the Tax Court to declare avoidance at the request of the SII, is maintained.
Circumvention involves the avoidance of taxable events through legal acts, with a six-year audit period. Identification documents are also required for sellers of used goods.
SII Governance
Two committees are created in the SII; Executive Committee, which will decide on NGA and avoidance and Tax Committee, which will issue opinions on circulars and audits, without being able to advise taxpayers.
Bank Secrecy
The SII will be able to request banking information from taxpayers, who must respond within 10 days, with silence being interpreted as rejection. Exceptional procedures will also be established to investigate tax crimes.
SII’s Powers of Examination
Measures are introduced to allow the Director of the SII to assign certain taxpayers to audit units outside its jurisdiction. In addition, double audits on matters already reviewed are prohibited.
Appraisals and Business Reorganizations
Article 64 of the Tax Code is amended so that certain reorganizations are not taxed, prohibiting the SII from taxing them if the tax cost is maintained and no cash flows are generated.
Anonymous Whistleblower
The figure of the anonymous whistleblower is created, who will receive 10% of the fine if the illicit exceeds 100 UTA, and sanctions are imposed for malicious denunciations and restrictions to those who advised the denounced.
Termination of Business Transactions
The process of termination of business for SMEs is simplified, allowing the SII to act ex officio in certain cases. In addition, a positive silence is established if the SII does not respond within 6 months.
Tax Offenses
Sanctions are updated and more severe measures are introduced for offenses such as falsification of documents and obstruction of audits.
Procedures before the General Treasury of the Republic (TGR)
The procedures of the Treasury are modernized, which by default will be electronic mail and the files will be electronic or digitalized.
New Information Obligations
Banking entities must report on accounts with numerous credits for auditing purposes, and business groups must designate an attorney-in-fact responsible for communication with the SII.
Luxury Tax
Restrictions in the management of the tax are eliminated and new entities are established to report the tax.
Taxpayer Ombudsman’s Office (DEDECON)
DEDECON’s powers are expanded to include aspects of the Treasury and Customs, for better representation of taxpayers.
2. Income Tax Law:
Presumptions for the control of entities abroad on passive income are expanded and transactions between related parties at market prices are regulated.
3. Value Added Tax (VAT) Law:
The VAT regime is extended to goods abroad and digital services. Exporters must demonstrate recent exports to receive refunds or reimbursements.
4. Transitory Windows and Benefits:
A capital repatriation regime is established with a 12% tax and payment facilities for tax debts, including interest forgiveness if the debt is recognized.
The details of each approved matter are available in the document prepared by az [Download here].
For more information on the application of this new regulation, we recommend consulting our tax group:
Rodrigo Albagli | Partner | ralbagli@az.cl
Álvaro Rosenblut | Partner | arosenblut@az.cl
Andrea Bobadilla | Tax Group Director | abobadilla@az.cl
Valentina Herrera | Associate | vherrera@az.cl
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