Since November 26, the Guatemalan authorities have the power to access taxpayers' bank information for tax purposes, so they can now corroborate that the bank income of companies coincide with the payment of their taxes.
After the resolution of the Constitutional Court was published in the Diario de Centroamérica on November 25, in which the appeal of unconstitutionality filed by Escalas Mercantiles S.A., which was intended to prevent the authorities from having access to the banking information of companies and individuals, the law that empowers the Superintendence of Tax Administration (SAT) to investigate taxpayers has come into effect.
One year after the suspension of taxpayers' access to bank information for tax purposes, the Guatemalan Constitutional Court ruled definitively and revoked the suspension.
A declaration of unconstitutionality has been given to the $0.65 tax per bag of cement distributed, the same amount per phone or fixed line and 10% on royalties for mining.
The controversial tax was proposed by the Pérez Molina administration to finance part of the budget for 2015 and the intention was to raise about $2.6 billion.
The decision to declare them unconstitutional was taken unanimously by the judges, leaving "...
The Constitutional Court has ruled as unfounded the suits on unconstitutionality filed by cement companies and left in place a tax of $0.65 on the distribution of each sack of cement.
The Constitutional Court decided to maintain the tax of $0.65 per sack of cement as indicated by the reform approved for the Law of Specific Tax on the Distribution of Cement under the fiscal year 2015 of the National Budget.
The application of tax of $0.65 per mobile phone line that had been proposed by the Executive to fund part of the 2015 budget has been temporarily suspended.
The Constitutional Court temporarily suspended the collection of the tax on telephone lines after the Chamber of Industry and the three phone companies operating in the country submitted an appeal against the tax.
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.
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. "
The measure to collect value added tax on tips is being maintained despite the resistance shown by the corporate sector.
"We have reached an agreement with employers and the three articles in which they disagreed have been excluded from the proposed amendments to the Tax Update," said Pavel Centeno, Finance Minister (Minfin).
According to Andres Castillo, president of the Chamber of Industry of Guatemala (CIG), they only signed up to the Value Added Tax (VAT) on tips in order not to hinder the discussion of other items on which agreements have already been made.
In order to compensate for the resources that the government will not receive from taxes vetted by the Constitutional Court, the Tax Authority will increase audit pressure.
The decrease of $64 million in revenue, has led the Tax Authority of Guatemala (SAT by its initials in Spanish) to strengthen its control plan with which it supervises companies.
The suits citing unconstitutionality presented in Guatemala against the tax reform have caused irrecoverable losses to government coffers.
The head of Collection at tax authority SAT said that " the reform does not only include income tax (ISR)" and noted that the Constitutional Court (CC), among other resolutions, suspended the collection of a 5% tax on the first registration of tractors (Iprima).
The suspension by the Constitutional Court of the application of more articles from the Tax Reform Act could cost the state more than $255 million.
The Constitutional Court has provisionally suspended two more articles of the Tax Reform Act. The first is Article 4, which includes as earned income "pensions, retirement funds and widows' pensions, in respect of an employment exercised in the country, paid or credited to any beneficiary who is resident in Guatemala", reported Elperiodico.com.gt.
In Guatemala, the Constitutional Court has accepted an appeal filed by businessmen and suspended the application of Article 61 of the tax reform.
Unanimously and provisionally, the Constitutional Court of Guatemala ordered the suspension of Article 61 of the Tax Reform related to reclassification of operations after considering it "patently unconstitutional."
The Constitutional Court of Guatemala has takem up a law suit filed by the Union of Importers of Machinery and suspended the collection of the ‘Iprima ‘ for agricultural and construction tractors.
The constitutional motion was filed stating that tractors are considered as working capital, and that the first registration tax (Iprima), which is set at 5%, is contrary to supporting the productivity established by the Constitution.