Guatemala: New Measures Against Tax Evasion

As part of an audit plan which will start this year and will include access to banking information, the tax authority will be verifying transactions of real estate sales.

Tuesday, February 28, 2017

an dir="ltr">With its 2017 audit plan the Superintendency of Tax Administration is preparing to use for the first time a law that authorizes it to access taxpayer's banking information when required.

In the case of audits of transactions for buying and selling real estate, Francisco Solórzano Foppa, head of the Tax Authority (SAT) warned: "... ' We are going to go both to the bank account of the seller as well as the buyer, to verify the amount received by each of them, and if they did not declare the corresponding amount there will be sanctions, and it will not be surprising if there are criminal allegations.'"

See also "Guatemala: Bank Secrecy Now Lifted"

Carlos Gonzalez, an analyst at the Association for Research and Social Studies, told Diario de Centroamerica that "... there are taxpayers documenting operations that are lower than market values in order to pay less tax, because because of this it is recommended that valoration criteria be applied, depending on the location, cost and size of the property."

They will also be carrying out audits on companies that have shown losses in consecutive periods or have been operating for five years and have not been monitored.

More on this topic

Bank Secrecy: Can the Court's Decision Be Reversed?

August 2019

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.

Livestock and Tax Evasion

December 2017

Nearly $14 million may have been defrauded from the Guatemalan treasury by a group of people who, through using front companies, issued false invoices to simulate livestock purchases.

The Superintendency of Tax Administration (SAT) released a list of 150 companies that may be involved in a case of tax evasion through the creation of ´fronted' or fake entities. 

Guatemala: Bank Secrecy Now Lifted

February 2017

A law has entered into force which facilitates access to individuals and companies' bank information with a court order at the request of tax authorities.

Francisco Solorzano, chief of the Superintendency of Tax Administration (SAT), noted that "...

Guatemala: Fiscal Transparency and Banking Secrecy

May 2016

The tax authority is insisting on the impossibility of complying with information exchange agreements with other countries if banking secrecy is not eliminated for tax purposes.

Amid the discussion in Congress of the draft Law for Strengthening Fiscal Transparency and Governance of the Tax Administration, the superintendent Solórzano Foppa reemphasized the need to allow access to taxpayers' tax information for tax purposes by means of authorization given by a judge. He also announced that preparations are being made for "... a new control plan with which an attempt will be made to recover the power to collect taxes on income earned outside of Guatemala that are transferred to offshore accounts."

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Latinamerica Title Co. is an agent of Chicago Title. Our company offers customers the most comprehensive and accurate title and escrow related services in the region, enhancing real estate transactions with a group of services that minimize the risk of investing in a foreign country.
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