Guatemala: Illegalities Reported in Tax Reform

The Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations is protesting against 40 items in the tax reform laws which came into effect on 1 January.

Tuesday, January 15, 2013

According to the members, this reform was approved by the Guatemalan Congress without much discussion and in a hasty manner.

According to an article published by, CACIF intends to present to the Finance authorities a series of amendments that would modify decree 4-2012, the Act Strengthening the Tax Administration 2 (FAT2), and 10-2012, the Tax Law Update.

If not resolved through dialogue, the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations (CACIF), will submit a constitutional complaint against the 40 items of tax reform laws passed in 2012 and which became effective on 1 last January.

Andres Castillo, president of CACIF, indicated that they are seeking a rapprochement with the authorities before taking legal action. "We want to meet the criteria of the Ministry of Finance (Minfin), and if there is no agreement or consensus we will have to go to the Constitutional Court (CC) which will define whether or not it is illegal", said Castillo.

Moreover, the Deputy Minister of Finance, Maria Castro, said that the reform discussed included input from discussions in the Fiscal Pact in 2001, and which was attended by constitutional lawyers to pay attention to legality.

"The private sector is free to bring the action which in its discretion it deems appropriate. They will all eventually use this resource to avoid an increase in tax collection", he added.

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