Since November 26, the Guatemalan authorities have the power to access taxpayers' bank information for tax purposes, so they can now corroborate that the bank income of companies coincide with the payment of their taxes.
After the resolution of the Constitutional Court was published in the Diario de Centroamérica on November 25, in which the appeal of unconstitutionality filed by Escalas Mercantiles S.A., which was intended to prevent the authorities from having access to the banking information of companies and individuals, the law that empowers the Superintendence of Tax Administration (SAT) to investigate taxpayers has come into effect.
As a result of the elimination of banking secrecy in Guatemala, the business sector announces that it will be alert to "respect due process and the confidentiality of taxpayers.
One year after having suspended access to taxpayers' bank information for fiscal purposes, at the beginning of August the Constitutional Court ruled definitively and revoked the suspension, so that in the coming weeks the changes will begin to apply.
Experts and authorities believe that the ruling by the Guatemalan Constitutional Court revoking the suspension preventing access to taxpayers' bank information for fiscal purposes could be reversed with another legal action.
In recent days, the issue has become more relevant in the country, because after a year of being suspended access to banking information for tax purposes, on August 6 the Constitutional Court finally ruled, authorizing the Superintendence of Tax Administration (SAT) to review the accounts of taxpayers.
One year after the suspension of taxpayers' access to bank information for tax purposes, the Guatemalan Constitutional Court ruled definitively and revoked the suspension.
Arguing that it does not comply with the standards on transparency and exchange of information for tax purposes, the OECD evaluated Guatemala negatively and recommended working on direct access to taxpayers' banking information.
As planned, following the temporary suspension by the Constitutional Court (CC) of the article of law facilitating access to taxpayers' bank information, the Organization for Economic Cooperation and Development (OECD) decided to include Guatemala in the list of countries that do not comply with their fiscal information commitments.
In its next evaluation, the OECD could lower Guatemala's rating, because in August last year access to bank information with a court order was suspended, which could lead to an increase in the credit price.
A bill that is being discussed in the Congress of Costa Rica would allow the tax authority to lift bank secrecy for companies without needing authorization from a judge.
The bill proposed by MPs of the Frente Amplio party includes a fine of between three and 100 base salaries, for any financial institution that refuses to provide information to the Tax Department or who delivers it outside of the required deadlines.
The Superintendency of Securities may provide access to bank information when investigations because of breaches are carried out in the stock market.
The decree took effect on December 17, 2016, and states that when the Superintendency of Securities (SMV) requires information on bank depositors and liabilities, this will be requested through the Superintendency of Banksof Panama. In addition, the two regulators signed a memorandum of understandingto facilitate exchange of information.
The International Banking Center reported $118 billion in assets in 2015, $10 billion more than was recorded in 2014.
In 2015 the International Banking Center in Panama reported total assets in the order of $118,477 million, 9.2% more than the amount reached in 2014, when the figure reached $108,419 million, according to figures from the Superintendency of Banks in Panama.
The tax authority insists that Congress approve the changes to the Tax Code and the Banking Law so that regulated entities provide information to the SAT for tax purposes.
The request by the department of the Superintendency of Tax Administration to Congress aims not only to improve monitoring tools and tax revenues, but also meet one of the conditions required by the OECD for removal from the organization's.gray list.
Limitations on control of casinos and gambling, and the inability to legally access banking information, limit the chances of success in the fight against money laundering.
Passing laws that favor combating money laundering have stalled in Congress, impeding the implementation of effective measures against the problem. This situation affects the results of the evaluation currently being carried out by representatives from the Financial Action Task Force group (FATF).
The Superintendency of Securities will be able to access banking information through the Superintendency of Banks, and share it with foreign regulators under the framework of international research on shares.
Marelissa Quintero, superintendent of Securities Market, told Prensa.com that "... under the law irregular transactions can be traced in the context of an investigation where there are indications of irregularities and violations in the securities market ... ". Also, she stated that "... foreign regulators may therefore request assistance from their Panamanian counterparts ...".
The agreement signed with the Organization for Economic Cooperation and Development implies limitations on banking secrecy, and an obligation to exchange tax information.
From a statement issued by the OECD:
El Salvador joins international efforts to combat international tax evasion
01.06.2015 - El Salvador has signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, becoming the 86th signatory on the most complete international tool for boosting cooperation against international tax evasion.
An initiative that is being discussed in the Legislative Assembly would lift bank secrecy with regards to tax matters, without the need for an order to be given by a judge.
Reform to the Code of Tax Rules and Procedures would allow tax authorities to access client's bank information, if needed. This amendment is part of the requirements for the country to join the Organization for Economic Cooperation and Development (OECD).
The new head of the Superintendency of Banks intends to resume the discussion in Congress of a bill which would regulate banking secrecy in the country by way of tax audits.
With the aim of improving tax controls, the Superintendency of Banks (SIB) seeks to reform national legislation for the regulation of banking secrecy in order to access "... Banking information of taxpayers, under guarantees of confidentiality."