by Juan Manuel González | Jun 13, 2023 | Noticias-en
On June 4, 2023, Law No. 31763 (the “Law”) was published in the Official Gazette “El Peruano”, a Law that modifies Law No. 29671, Consumer Protection and Defense Code (the “ CPDC”), standardizing the term for attention to claims for financial and insurance products or services, by means of which article 88.1 of the CPDC is amended, establishing that the entities of the financial and insurance system must resolve the claims presented by the consumers within a period not exceeding 15 business days.
On the other hand, the Law also indicates that, exceptionally, the Superintendence of Banking, Insurance and AFP (the “SBS”) may establish an extension term when the nature and complexity of the operation, product or service that is the subject of the claim or requirement justifies it. , a situation that must be made known to the consumer before the end of the initial term, without prejudice to the consumer’s right to appeal directly to the Consumer Authority.
Finally, it is established that the Law will enter into force sixty (60) business days from its publication in the Official Gazette El Peruano, and that the SBS, within a period not exceeding thirty (30) calendar days from Said publication must issue the necessary complementary norm or adapt the existing ones for its effective application.
For more information contact:
Mario Pinatte | CPB Partner | mpinatte@cpb-abogados.com.pe
by Juan Manuel González | Jun 8, 2023 | Noticias-en
During the month of May, the Agreement approving the Transitory Provisions applicable to the General Rules for obtaining the opinion on compliance with tax obligations in the area of social security was published in the Official Gazette of the Federation.
The Agreement establishes that the opinion on compliance with tax obligations in the area of social security will be valid for fifteen calendar days from the date of its issuance, so that the taxpayer can formalize contracts with federal, state and municipal authorities.
The aforementioned authorities will verify that the term of validity of the compliance opinion coincides with the date on which the respective Contract is signed.
Finally, the taxpayer will authorize the IMSS to make public the result of the consultation on compliance with tax obligations in the area of social security.
The lawyers in the social security area are at your service to provide you with the support or advice you require on the matter.
For more information contact:
Juan José López de Silanes | Partner Basham, Ringe and Correa | lopez_de_silanes@basham.com.mx
by Juan Manuel González | Jun 2, 2023 | Noticias-en
According to the “Law on the Liability of Legal Entities on Domestic Bribery, Transnational Bribery and other Crimes” (“Law”), legal entities (domestic or foreign), and other commercial figures (such as trusts, associations and foundations), they will be criminally responsible for their acts of corruption. Similarly, the parent companies for actions of their subsidiaries and affiliates. The foregoing, without prejudice to the individual criminal responsibility of individuals for the commission of said crimes.
The Law imposes criminal sanctions such as: (i) Fines between 1,000 and up to 10,000 base salaries (approximately between US$715,000.00 and US$7,150,000.00); (ii) Loss or suspension of state benefits or subsidies for a period of 3 to 10 years; (iii) Disqualification from participating in contests or public tenders for a period of 3 to 10 years; (iv) Total or partial cancellation of the operating or operating permit, the concessions or contracts obtained as a result of the crime; and (iv) Dissolution of the legal entity.
Among the Law’s innovations, there is an incentive for companies to implement an “Optional Organization, Crime Prevention, Management and Control Model” (“ Model ”); which will serve as a mitigation of their sanctions up to 40%.
For this reason, on August 26, 2021, the Regulations to the Law were published in the Official Gazette, with the aim of regulating and guiding the minimum content required for the Model -and thus opt for the benefits of the Law- (“ Regulations ”). The Model is optional to adopt, and can work both independently or as part of other models and local or global programs of the companies.
Some aspects to note about the Model, according to the requirements of the Regulation:
- Risk Assessment: The first stage for the implementation of the Model should be the assessment of risks derived from the geographic and business context of the company. The Regulation includes the parameters and methodology that must be followed for risk assessment (and its subsequent management). The risk assessment tool must contain the deadlines for its update.
- Due Diligence: The Model must include a due diligence mechanism for business partners that present a medium or high level of risk or exposure. The Regulations indicate the minimum items to be considered during the due diligence process. There is an obligation to maintain updated information on said business partners. The review can be done internally or with external resources.
- Communication: The Model and the tools that make up the prevention policy must be made available to all levels of the hierarchical structure of the company, its relational entities, and, if possible, its counterparts.
- Compliance Agent: The company must designate a person or entity, internal or external, that has sufficient means and powers to perform their duties, which will be in charge of supervising the operation and compliance with the Model. The person in charge must have functional autonomy from senior management.
- Monitoring: The adoption of the Model must be verifiable and of sustained application over time. Its operation must be monitored and evaluated in order to detect failures, weaknesses, opportunities for improvement, or any other element that may add to its proper functioning.
- Audit: The company must carry out an external audit of the Financial Statements maximum every three years. Likewise, you must carry out an internal audit as a crime prevention method, at least once a year.
- Complaint Mechanisms : The company must have clear complaint channels, well-established investigation procedures, and guarantees of protection for whistleblowers.
In Chapter IV of the Regulation, the minimum requirements for the SMEs Model are expressed, in a differentiated way – which are more accessible to comply with.
In general terms, the company must develop the necessary regulatory tools, internal control systems, programs and/or management models – always considering its own characteristics, its line of business, size, complexity, nature and particularities of action. Among the behaviors to regulate, there is the granting of gifts, hospitality, entertainment, representation expenses, client trips, entertainment, political contributions, donations for charitable purposes and sponsorships; as well as the risks of committing crimes of corruption.
For more information you can contact:
Juan Carlos Tristan | BLP Partner | jtristan@blplegal.com
Janelle Christie | BLP Associate | jchristie@blplegal.com
by Juan Manuel González | May 31, 2023 | Noticias-en
In this article, we will examine the reality of tax compliance in countries such as Argentina, Chile, Uruguay, Paraguay, Bolivia, Peru, Colombia, Ecuador, Central America, Mexico, and the United States, and the measures that have been adopted to address the issue.
Tax compliance is a critical issue in every country in the world. Taxes are a vital source of revenue for governments, and failure to comply with tax obligations can have serious consequences for both individuals and businesses. In recent years, many Latin American countries have implemented measures to improve tax compliance and reduce tax evasion.
In addition to being a fundamental element for the administration of any country, it is a fundamental legal and ethical requirement for any company because they have the responsibility to comply with their tax obligations and pay the corresponding taxes in each jurisdiction. Failure to comply with tax can have serious consequences for a business, including fines, penalties, litigation, and damage to its reputation. Lack of tax compliance can affect the financial stability and sustainability of any company.
In Argentina , tax compliance has been a critical issue for companies for decades. Tax evasion and non-compliance with tax obligations are persistent problems that negatively affect the country’s economy. However, in recent years, many Argentine companies have taken steps to improve their tax compliance and reduce the risk of non-compliance. One of the main measures that organizations have taken is the implementation of tax compliance management systems that make it possible to monitor and manage their tax obligations more effectively, and reduce the risk of errors and omissions.
Chile , for its part, has a complex tax system that requires a high level of compliance by companies. In addition, the Chilean tax administration is very active in identifying and sanctioning companies that do not comply with their tax obligations. Another important aspect of tax compliance in Chile is cooperation with tax authorities. Many companies have established closer relationships with the tax administration and have implemented measures to ensure transparency and accuracy in their tax returns.
In Uruguay , Paraguay and Bolivia , tax compliance is also a critical issue for companies. Although the tax systems of these countries may be less complex than those of Argentina and Chile, compliance with tax obligations is still essential for the proper functioning of companies. In recent years, greater emphasis has been placed on auditing and identifying companies that do not comply with their tax obligations.
The tax systems of Peru , Colombia and Ecuador are complex and the tax administrations are very active in the examination and sanction of companies that do not comply with their tax obligations. It is common for the three jurisdictions that companies that operate there must invest in training programs for their employees and in tax compliance management systems to guarantee compliance with their obligations and reduce the risk of sanctions and fines.
The state of tax compliance in Central America varies from country to country, but in general, tax compliance is a critical issue for companies in the region. The tax systems in Central America are complex and the tax administrations are very active in examination and penalization.
In countries like Costa Rica and Panama , companies are required to file tax returns and pay taxes on income, value added, and social security contributions. In addition, companies must comply with certain information and documentation requirements, and tax administrations have implemented measures to improve inspection and penalize companies that do not comply with their tax obligations. It is important to note that international tax information exchange agreements and cooperation between tax administrations from different countries are becoming more frequent in the region, increasing the need for rigorous tax compliance.
In Mexico , the Mexican Tax Administration (SAT) is known for being rigorous in the examination of companies and individuals, and has implemented various measures in recent years to improve tax compliance, such as electronic invoicing and electronic accounting. The implementation of the Federal Tax Code in 2020 and the new Asset Forfeiture Law have further strengthened the legal framework and sanction mechanisms in tax matters. Mexican companies must pay attention to their tax obligations and take steps to ensure compliance, reduce the risk of penalties and fines, and improve their business reputation.
On the other hand, in the United Statess, the Internal Revenue Service (IRS), the US tax agency, is very active in monitoring and sanctioning companies that do not comply with their tax obligations, especially with regard to federal and state taxes. Businesses must file tax returns and pay income, employment, property, sales, and other taxes, as well as meet certain reporting and documentation requirements, such as filing W-2 and 1099 forms The Foreign Account Tax Compliance Act (FATCA) and the Foreign Account Tax Compliance Act (FBAR) are important regulations that companies doing business abroad must be aware of. Local companies must meet their tax obligations,
Although the region has different realities in terms of the maturity in the incorporation of compliance programs within companies and commercial organizations, it is important to highlight that in most of the countries of the continent there is a common denominator that is governed by the interest of governments to increase efforts to control the tax activities of all sectors of the economy.
by Juan Manuel González | May 26, 2023 | Noticias-en
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