Citing unconstitutionality power has been taken away from the tax authorities to determine the basis for calculating tax owed in respect of Value Added Tax.
A paragraph in Article 7 of the Law on Value Added Tax (VAT) which was declared unconstitutional provided: "In the case that a taxpayer, within three months, reports in their declaration of turnover sales rates that are lower than at cost or production of goods, the tax authorities may determine the basis for calculating the tax owed, taking into consideration the sale price of the same product in other transactions of the same taxpayer within the same time ... unless the taxpayer can justify and demonstrate the reasons why this situation occurred and present banking and financial information proving their real income. "
The Chamber of Industry of Guatemala has submitted to the Constitutional Court an appeal against 14 items in the Laws of Taxation and Anti Evasion II.
"We see abuse in the functions that the SAT is acquiring in this new law," said Andres Castillo, president of the Chamber of Industry of Guatemala (CIG).
The actions are in addition to those raised weeks ago by MPs, businessmen and the chambers of Commerce and Agriculture, noted an article in Siglo21.com.gt.
The Chambers of Commerce and Agriculture submitted to the 4th Constitutional Court challenges against fifteen articles of the Tax Update Law.
These challenges are in addition to those presented last week by the Association of Coffee Exporters, and which will be submitted today, January 25, by the Guatemalan Chamber of Construction, the National Association of Home Builders and Contractors' Guild.
Business associations have submitted a constitutional complaint against the tax package approved by the government of Guatemala.
The Chamber of Commerce of Guatemala (GCC), the Chamber of Agriculture (Camagro) and the Guatemalan Association of Exporters (Agexport), have joined together in order to find a solution to the inconstitutionalities which they allege exist in the new tax rules.