Suspension of Business Closures for Fiscal Problems

A court ruling has suspended the Tax Authority in Guatemala from closing businesses who fail to comply with tax rules.

Wednesday, April 10, 2013

Mauro Chacón, President of the Constitutional Court (CC), explained that four actions of unconstitutionality have been presented by the chambers of Agriculture and Commerce, one of which was provisionally suspended by the Supreme Court.

"Article 50 has been suspended and is outside of the legal framework," Chacón explained, adding that the effect is that the Superintendency of Tax Administration (SAT) can not close a business until the Court has made its final ruling.

"We see this as positive because we believe that SAT should not have powers of judge and jury, and it gives more certainty to due process and defence of the taxpayer," said Andres Castillo, president of the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations (Cacif).

More on this topic

Guatemala: SAT Can Not Order Precautionary Closures of Companies

February 2014

Power has been removed from the Tax Authority to preemptively close companies found committing fiscal offense.

The Constitutional Court of Guatemala (CC) gas definitively removed from the authority of the Superintendency of Tax Administration (SAT) its ability to make preventative closures of businesses found not to be complying with the tax laws of the country. The CC had already suspended the rules on an interim basis.

Guatemala: Illegalities Reported in Tax Reform

January 2013

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.

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

Bank Secrecy Act in Guatemala

November 2012

The government wants to make progress in meeting OECD requirements in order to bring the country out of the list of "gray" countries regarding tax information exchange.

An article in reports that Pavel Centeno, finance minister, said that "Guatemala has not advanced in the work to meet all the demands of the Organization for Economic Cooperation and Development (OECD), since one of the points pending is the opening of bank secrecy for tax issues, it risks staying on the gray list of non transparent countries. "

Article in Anti-Evasion Act II Suspended

May 2012

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.

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