For the possible commission of the crime of Tax Fraud, the Superintendence of Tax Administration intervened the commercial company J.I. Cohen.
The intervention was authorized by the Pluripersonal Court of First Criminal Instance in Tax and Customs Matters of the Municipality and Department of Guatemala, informed the Superintendence of Tax Administration (SAT).
The Legislative Assembly approved in second debate a bill that aims to tax in the country the sale and self-consumption of imported or locally produced cement.
The initiative, which was approved in the first debate in the Assembly in mid-February and is still pending approval by the Executive Branch, establishes that the tax will be on imported cement produced nationally, in bags or in bulk, for sale or self-consumption, of any kind, whose destination is the consumption and marketing of the product nationally.
In order for Guatemalan producers to compete under the same conditions as neighboring countries, the government is preparing a bill that seeks to exempt agricultural inputs from VAT.
The initiative, known as the "Fiscal Equity Law", is being prepared by the Ministry of Agriculture, Livestock and Food (Maga), because, according to the institution's top official, other Central American countries do not charge value-added tax (VAT) on agricultural inputs.
The article of the law in Guatemala, which facilitated access to companies bank information via a court order requested by the tax authorities, has been temporarily suspended.
The decision was taken by the Constitutional Court after a company filed an appeal of unconstitutionality.Based on the arguments put forward, the CC decided to order the provisional suspension of Article 52, which empowered the Superintendency of Tax Administration (SAT) to request that a judge order the lifting of banking secrecy of individuals or companies when there was "...reasonable doubt about the results of the processes or execution of the selective and mass inspection plans'." See "Guatemala: Bank Secrecy Now Lifted"
In Guatemala, food industry businessmen are opposed to five bills that would change the rules on labeling and increase the tax on sugary drinks.
According to the Guatemalan Chamber of Food and Beverages (CGAB), bills that aim to increase VAT from 12% to 20% on sugary drinks and change the labeling rules, are based on misinformation.
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"... 'this tool will only be used when there is reasonable doubt about the results of the processes or execution of plans and mass selective control'."
With entry into force once again of the rule on transfer pricing, companies must take into account all the requirements in order to avoid penalties and adjustments to income.
The regulations in force since January 1 require taxpayers to adequately demonstrate and justify "... the amounts of payments and / or profit margins in their transactions with related parties" in order to ensure fair competition and collection of taxes.
The project stalled in the Guatemalan Parliament is keeping investment decisions paralyzed, until there is certainty about the rules that will govern the country.
In the meantime, President Pérez Molina once again urged the passage of the Act:
From an article on Guatemala.gob.gt:
The president of Guatemala, Otto Perez Molina, emphasized the need to pass the Law for Investment Promotion and Employment which was presented by the Executive Agency in January 2013 and is a package of reforms and new legislation to facilitate installation of firms in the country.
Employers are complaining that the lack of clarity over how the income tax law is applied is generating legal uncertainty.
The law on income tax that arose from the tax reforms two years ago is still raising doubts among private entrepreneurs, who believe that the lack of clarity on how it should be implemented not only casts doubts and causes legal uncertainty, but also generates more informality.
Congress is deadlocked and essential laws to give legal certainty to investments for textile companies, among others, are being delayed.
The bill to attract investment and jobs submitted in January 2013 has not been approved, this prevents laying a foundation for an industry that can not proceed without a regulatory framework.
"One of the goals of this legislative proposal is to fulfill the commitments Guatemala has assumed with the World Trade Organization (WTO).
The process of fixing prices, the tax structure and lack of investment in distribution are hindering the development of a market with great potential.
From a report by the Department of Agriculture of the United States:
Guatemala is the strongest potential biofuels producer in Central America given the high yields of sugarcane and palm oil and its efficient local industries.
A memorandum has been released detailing tax reforms to the Law on Income Tax, and payment and obligations schedules corresponding to January 2014.
Tax Memorandum 1 to 14 January 2014
Amendments to the Law on Income Tax
Decree No. 19-2013 contains amendments to the Law on Income Tax (ISR by its initials in Spanish) contained in Decree No. 10-2012 and which was published in Diario de Centro América on December 20, 2013.
The Tax Authority is analysis how to apply transfer pricing for imports and exports, as well as transactions conducted with other companies which hold shares and / or have common directors.
According to the Law on Tax Update (LAT by its initials in Spanish), taxpayers must submit to the Superintendency of Tax Administration (SAT) certain information and documentation.
Both sides are discussing three articles of the Tax Update Law, but so far have failed to reach an agreement.
According to Andres Castillo, president of the Chamber of Industry of Guatemala (CIG), one of the items that is causing disagreement is related to the payment of income tax (ISR) on the tips received by service companies.
The second article concerns a payment that is made up of a 10% income tax on the interest on loans taken out abroad.