Seven key aspects of the tax compliance project

The initiative seeks to reduce the tax compliance gap by approximately 25%, as well as generate financing for the increase of the PGU, among others.

On january 23, 2024, the Minister of Finance, Mario Marcel, announced the main axes of the bill on “Compliance with Tax Obligations” framed within the so-called Fiscal Pact.

It is important to note that this initiative seeks to finance the increase of the Universal Guaranteed Pension (PGU). In addition to collecting 1.5% of the Gross Domestic Product (GDP) and reducing the tax compliance gap by 25%.

The following are the seven main points of the bill:

Control of informality: Incorporates the duty to inform by financial institutions when a person receives more than 50 transfers in a month.

Aggressive tax planning: Allows an administrative application of the General Anti-Avoidance Rule, without having to go through a court. In addition to the elimination of aggressive tax planning spaces, not being able to illegitimately alter the tax burden.

Regularization of tax obligations: It provides flexibility to sign payment agreements with the Treasury, with special measures for SMEs. A new sale is also included to repatriate capital from abroad, after payment of taxes. Thus, a period is also contemplated to facilitate the early termination of tax judgments, and the possibility of accessing payment agreements with interest forgiveness and fines.

Modernization of the tax administration: The general rule for notifications will be email. In this way, it seeks to modernize judicial procedures, through the creation of electronic records. It also contemplates making the lifting of bank secrecy for tax investigations more flexible, with the taxpayer having to justify their opposition in order for the SII to access their financial information.

Tax crimes: The creation of the figure of the “anonymous whistleblower” is considered to strengthen the prosecution of tax crimes and increases the penalties for those who use or provide false tax documents.

Dedecon: New powers are granted to the Dedecon, such as carrying out dissemination and education actions on compliance with tax obligations. Also, access to tax information is granted and the possibility of representing the taxpayer before Customs and Treasury is contemplated.

Institutional strengthening and probity: Greater resources are provided for technological development in Customs, Treasury and SII, along with incorporating new rules to strengthen the probity of tax administration officials.

Finally, the bill represents a significant step towards reducing the compliance gap and obtaining resources. In this way, the Executive seeks to address the challenges that will have a direct impact on taxpayers and tax planning.

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