Suspension of Business Closures for Fiscal Problems

A court ruling has suspended the Tax Authority in Guatemala from closing businesses who fail to comply with tax rules.

Wednesday, April 10, 2013

Mauro Chacón, President of the Constitutional Court (CC), explained that four actions of unconstitutionality have been presented by the chambers of Agriculture and Commerce, one of which was provisionally suspended by the Supreme Court.

"Article 50 has been suspended and is outside of the legal framework," Chacón explained, adding that the effect is that the Superintendency of Tax Administration (SAT) can not close a business until the Court has made its final ruling.

"We see this as positive because we believe that SAT should not have powers of judge and jury, and it gives more certainty to due process and defence of the taxpayer," said Andres Castillo, president of the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations (Cacif).

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