Tax Evasion in Guatemala Reaches 7% of GDP

There is urgent need to strengthen the Superintendence of Tax Administration (SAT) with audit and control instruments.

Monday, January 24, 2011

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."

Sergio de la Torre, former president of the Coordinating Committee for Agriculture, Commerce, Industry and Finance (Cacif), said: "Hence the importance of approving the Anti-Evasion Law II initiative and the proposed exceptions to banking secrecy, which is in Congress, without increasing taxes. Just by allowing SAT to access bank accounts for tax verification purposes we will make a lot of progress in the fight against tax evasion."

Businessmen are also concerned by a possible negative economic impact of the coming election year in Guatemala, particularly the difficulty of making business decisions due to political uncertainty.

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