The Tax Authority will be holding a competition to hire a company to conduct an external audit of the institution.
October 7 is the deadline for reciept of offers from companies interested in participating in the selection and recruitment process.
"... Those interested in participating in the process must have experience in implementing external audit work in decentralized State entities, have a assets equal to or greater than Q500 million ($65 million).
The Tax Authority announced special audits in companies with "related parties abroad", which can be avoided by presenting an Agreement on Advance Pricing.
This year nine audits are being carried out with the objective of corroborating "... suspicions raised when key rights or trade credits have been created." According to a study conducted by risk teams to implement transfer pricing, coffee, bananas, sugar, fuels and metals sectors are reporting increased risk in their transactions.
An announcement has been made that 34 large companies suspected of tax evasion will be audited by foreign experts.
From an article on the web site of the Department of Revenue (DEI by its initials in Spanish):
International auditors to monitor 34 large companies that are evading the DEI
Tegucigalpa - The head of the Department of Revenue, (DEI), Miriam Guzman, confirmed on Friday that at the end of this month, international auditors will be arriving in the country to monitor 34 large companies where there is certainty that tax is being evaded.
Discussion is being given to hiring an external company to provide consulting services in order to improve the management and collection of taxes.
The proposal which emerged from the leadership of former Finance Minister Pavel Centeno, is once again gaining strength at a time when the Tax Authority is analysing different alternatives to raising tax revenue.
The Tax Authority will investigate if companies who benefit from the Law of Incentives for Export and Maquila and from the Law on Free Zones, are correctly complying with all the requirements.
With this, the Superintendency of Tax Administration (SAT), aims to reduce fraud and tax evasion in the country. According to the Director of Customs, Filadelfo Reyes, they will follow up on 10,000 statements from the free zones and other places during the first half of 2013.
Chicas Vilchez & Ruiz is a professional finance and accounting firm providing Auditing, Consulting, Outsourcing, and Tax services in El Salvador, Central America and the United States.
Organization that operates in El Salvador, Costa Rica, Guatemala, Panama, Honduras and Nicaragua
Phone: (503) 2264 8069
The measure that forced the submission of audited financial statements for the payment of income tax was limited to big enterprises.
The Guatemalan Congress approved Decree number 14-2009 which limited the types of companies that must file audited financial reports.
According to this new provision, small and medium sized businesses are not required to audit their reports, while special contributors and those inscribed under the in-bond industry, export activity and free zone schemes will have to do so.