Guatemala: Articles Suspended in Anti Evasion Act II

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.

Friday, July 12, 2013

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 addition, adjustments were established when "a business falsely recorded something which did not happen or transferred rights in order to conceal the true identity of the owners."

The members of the Constitutional Court concluded that it is the judges and not the SAT delegates who must determine whether there is falsehood.



More on this topic

Guatemala: Appeal Against Employment Act

May 2016

By filing of a lawsuit arguing unconstitutionality the union of free zones aims to once again include the 25 sectors which were excluded from receiving tax benefits under the new law.

The regulations of the controversial Emergent Act for the Conservation of Employment are still under review by the Attorney General's Office and authorities at the Ministry of Economy stated they would evaluate the possibility of modifying it, since the law is already in force and can only be revised by Congress.

Guatemala: Another Attempt to Suspend Credit Card Law

March 2016

On the same day of its entry into force, the employers' union filed a constitutional motion against it, arguing that it adversely affects the freedom of the financial market.

For the second time a motion has been filed to temporarily suspend the enforcement of the law, with arguments once again made that the relevant processes were not followed and that its application will have adverse effects on the Guatemalan financial market.

Guatemala: Notional VAT Calculation Annulled

March 2014

Citing unconstitutionality power has been taken away from the tax authorities to determine the basis for calculating tax owed in respect of Value Added Tax.

A paragraph in Article 7 of the Law on Value Added Tax (VAT) which was declared unconstitutional provided: "In the case that a taxpayer, within three months, reports in their declaration of turnover sales rates that are lower than at cost or production of goods, the tax authorities may determine the basis for calculating the tax owed, taking into consideration the sale price of the same product in other transactions of the same taxpayer within the same time ... unless the taxpayer can justify and demonstrate the reasons why this situation occurred and present banking and financial information proving their real income. "

Panama: Sellers of Liquor Oppose Law

May 2013

A law suit has been filed alleging unconstitutionality against the law which demands a deposit ranging from $3000 to $75,000.

With this suit, the aim is to get a declaration of unconstitutionality for the law of 2 February 5, 2013 which states in Article 3 that the liquor stores across the country must deposit with the National Treasury, a sum ranging from $3000 to $75 thousand which will be retained in the case of penalties given for noise, fights or misdemeanors.

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