In the context of the discussion of the bill that systematizes economic crimes, the so-called Tax Compliance has gained relevance, aimed at compliance with the regulations on the matter, by taxpaying entities and the responsibilities derived from eventual irregularities. In this sense, the proposal contemplates the incorporation into the catalog of crimes of Law No. 20,393, which establishes the criminal liability of legal persons, the crimes prescribed and sanctioned by article 97 of the Tax Code.
Although in the local reality it is not possible to speak of a tax Compliance, companies, in general, have mechanisms to comply with the obligations imposed by the law and the Internal Revenue Service, in order to avoid sanctions derived from non-compliance with regulations. .
One of the obligations that is seen to be of great importance is the presentation of the Affidavit No. 1929 on Foreign Operations (DJ No. 1929), whose submission deadline expires on June 30 of this year. The following are required to comply with this declaration: (i) taxpayers domiciled or resident in Chile who make an investment or operations abroad, or who obtain income from abroad; and (ii) permanent establishments in Chile of foreign entities or non-resident persons who make an investment or operations abroad, or who are attributable to foreign income.
The consequences for non-compliance with this obligation derive from non-presentation, delay or errors in DJ No. 1929, due to the provisions established in Title II of the Tax Code, of infractions and sanctions.
In the case of delay or omission, the fines for non-compliance can reach 10% of the taxes resulting from the liquidation, if the delay is less than 5 months. If this term is exceeded, the fine increases by 2% for each month or fraction of a month of delay with a maximum limit of 30% of the taxes owed.
However, if the offense is based on a maliciously incomplete or false declaration, the fines can vary from 50% to 300% of the value of the evaded tax, in addition to custodial sentences ranging from 541 days to 5 years in prison. It is important to take into account that, in the latter case, both the taxpayer and his representatives and managers may be active subjects of the offense.
Compliance with these obligations, added to the forthcoming incorporation of these offenses into the law on criminal liability of legal entities, poses new challenges in terms of regulatory compliance. This forces companies to adopt new behaviors in their business behavior, raising compliance standards, based on the risks they face.
The fact that Law No. 20,393 includes new crimes in its catalog implies an opportunity to strengthen the fight against corruption. In this sense, it is important to be aware of the criteria adopted in terms of crime prevention models, since this will contribute to preventing and reducing the commission of crimes and fostering a culture of ethics and compliance in the business environment.
Due to this, it is crucial that companies implement adequate compliance mechanisms, which allow them to comply with their tax obligations, in order to prevent possible irregularities or non-compliance that could lead to sanctions and legal and reputational responsibilities.
Regulatory compliance and a proactive approach to tax compliance are essential to ensure the proper functioning of companies in the context of tax obligations and current legal regulations.
For more information on these issues, you can contact the albagli zaliasnik Compliance and Tax team:
Francesca Franzani | Compliance Group Director | ffranzani@az.cl
David Ancelovici | Tax Group Director | dancelovici@az.cl
Jaime Viveros | Associate | jviveros@az.cl
