The Constitutional Court has declared unconstitutional three articles of the Tax Code, which empowered the Tax Authority to make adjustments if it detected tax simulation.
S21.com.gt reports: "In Article 31 of Decree 4-2012 the concept of fiscal simulation was added, the aim was that the Superintendency of Tax Administration (SAT) made adjustments when delegates established that taxpayers had concealed the legal status of the business by giving a appearance different to that under which it was registered. "
In Guatemala, the justice department has provisionally suspended Article 31 of the Act authorizing the SAT to penalize taxpayers who commit violations of their tax obligations.
The partial unconstitutionality (only against Articles 31 and 50) was requested by the Chamber of Agriculture through its chairman, Otto Kuhsiek, on 9th March. The Bar Association also filed an action before the Constitutional Court in the same vein.
Employers admit their need to improve transparency and fight corruption, but have requested extensive analysis and discussion of the proposal sent to Congress.
Hernán Guerra writes in the Journal by the Guatemalan Chamber of Industry:
The President, Otto Perez Molina, wants Congress to approve in record time another set of laws which, according to him and his staff, will become new weapons to be used to combat corruption, improve transparency of public expenditure and at the same time, leverage the recently approved tax reform. However, the objectives are not shared by analysts, representatives of civil society and business, with the common denominator being that the proposals require "more analysis, more discussion and participation."
The coffee sector has announced its opposition to a proposal to establish a 5% surcharge on Income Tax (ISR in Spanish) for the agricultural sector.
A press release by Anacafé states:
The Guatemalan coffee industry via the National Coffee Association, Anacafe, has expressed concern about the establishment of a 5 percent surcharge on Income Tax,, referred to in the draft Anti-Evasion Act II which is now being considered in the Congress of the Republic. Political parties in their current campaigns have said that they will not raise taxes, their representatives in the legislative body have already made agreements to approve them.
The four candidates leading the polls, Otto Pérez Molina, Sandra Torres, Eduardo Suger and Harold Caballeros, have presented their fiscal policy.
Otto Pérez Molina of the Patriota Party, is urging the adoption of a fiscal pact, and said of tax increases, "During my administration we will have to consider whether an increase (in tax) is necessary or not."
A new attempt is being made by the Álvaro Colom government to increase tax collection by enforcing the so-called 'Anti-evasion Law'.
The bill contains administrative measures to improve control over and auditing of existing taxes as well as standardize aspects that seek to combat tax and customs fraud and smuggling, according to a communication from the Finance Ministry.
The Finance Ministry asked for two changes to the tax evasion bill being discussed in Congress.
The Ministry's request to Congress includes more controls when issuing special invoices for agricultural producers, the elimination of tax credit for small taxpayers and reestablishing the tobacco tax.
Prensalibre.com printed comments from Deputy Finance Minister Marco Livio Diaz, "...
There is urgent need to strengthen the Superintendence of Tax Administration (SAT) with audit and control instruments.
Tax evasion reached $ 2,500 million, and businessmen insist that before a tax reform is passed, increasing tax burden and affecting competitiveness in the country, it is required "to improve the fight against tax evasion and customs smuggling."