Taxpayer rights are recognized in Article 8bis of the Tax Code. Mechanisms and deadlines for enforcing these rights are also established by law. Taxpayers and accountants can and should demand compliance.

CONSULT US

Article 8bis of the Tax Code

Law 21210 Art. first No. 3 Official Gazette 24.02.2020

Article 8 bis.- Without prejudice to the rights guaranteed by the Political Constitution of the Republic and the laws, the following constitute the rights of taxpayers:

1. To be informed about the exercise of their rights, to have their tax obligations facilitated, and to obtain clear information on the meaning and scope of all actions in which they have the status of an interested party.

2. To be treated courteously, diligently and promptly, with due respect and consideration.

3. To obtain in full and timely manner the refunds to which he is entitled in accordance with the tax laws, duly updated.

4. Whether or not the actions of the Service constitute auditing actions or procedures:

a) Clearly state the reasons for the corresponding action. Indeed, all actions of the Service must be justified, that is, they must express the facts, the law, and the logical and legal reasoning for reaching a conclusion, whether or not the respective legal provision expressly requires it. Additionally, they must expressly indicate the deadline within which the action must be completed. In such cases, the applicable legal rules will apply, if any. In the absence of a legally established deadline, the Director will issue a resolution setting the deadlines within which the actions must be completed.

b) Clear information is provided regarding the scope and content of the action.

c) The nature and subject matter to be reviewed and the deadline for submitting allegations or appeals shall be communicated. Every taxpayer shall have the right to obtain certification, upon request, of the applicable statute of limitations.

d) All taxpayers shall be informed, at any time and by an expeditious means, of their tax situation and the status of any procedure in which they are involved.

e) The accreditation of acts, contracts, or transactions carried out in Chile or abroad shall be accepted with the background information corresponding to their legal nature and the place where they were executed, without requiring formalities or solemnities not established by law. Notwithstanding the foregoing, the Service may, in cases it so determines, require that the documents be accompanied by translations into Spanish or apostilled.

f) Notification is given, at the end of the action in question, certifying that there are no pending actions regarding the matter and for the period reviewed or that has been audited.

5. That the Service not initiate a new audit procedure, either in the same fiscal year or in subsequent periods, with respect to items or facts that have already been the subject of an audit procedure. For these purposes, an audit procedure shall be considered to be one formally initiated by the Service through a summons pursuant to Article 63, excluding reviews initiated by other means, unless the review formally concludes with an adjustment, assessment, settlement, resolution, or certification that accepts the facts or items subject to the review. However, the Service may issue a new request for the same period, or subsequent periods, only if such new request concerns an audit procedure related to facts or taxes different from those that were the subject of the previous request. The Service may also issue a new request if new information arises that could give rise to a procedure for gathering information as referred to in paragraph 10 of Article 161. or the application of the provisions of Article 4 bis, 4 ter, 4 quater, 4 quinquies, or the application of Article 41 G or 41 H of the Income Tax Law; or that such new background information is obtained in response to requests for information from a foreign authority.

6. The right to be informed about the Service officials responsible for processing the cases in which they have the status of an interested party. This right does not apply to matters covered in Article 161, number 10, nor to the procedures in Article 4 quinquies. Likewise, the right to be informed if they have been the subject of a request for information exchange, provided that this does not imply a potential breach of tax obligations.

7°. Obtain copies in electronic format, or certifications of the actions taken or the documents submitted in the proceedings, under the terms provided for by law.

8. To be exempt from submitting documents that are not relevant to the procedure or that have already been submitted to the Service, and to obtain, once the respective procedure has concluded, the return of the original documents submitted. The Service must provide a reasoned assessment of all evidence or background information presented to it.

9. That in auditing acts, private life is respected and personal data is protected in accordance with the law; and that tax declarations, except in cases of legal exception, are confidential, under the terms provided by this Code.

10. That the Service's actions be carried out without unnecessary delays, requirements, or waiting periods, and in the least costly manner for the taxpayer, provided that the official in charge certifies receipt of all requested information and that this does not constitute non-compliance with tax regulations. This is without prejudice to the Service's right to request further information if necessary during an audit.

11. To exercise the corresponding resources and initiate the corresponding procedures, personally or represented; to formulate allegations and present background information within the time limits provided for by law and that such background information be incorporated into the procedure in question and duly considered by the competent official.

12. To respectfully and appropriately raise suggestions and complaints about the actions of the Service in which you have an interest or which affect you.

13. To ensure that the tax effects of their actions or contracts are those provided for by law, without prejudice to the exercise of the corresponding audit powers in accordance with the law. In this regard, the Service shall publish on its website all official communications, resolutions, and circulars, except those that are confidential in accordance with the law. Likewise, the Service shall maintain an up-to-date record of the interpretative criteria issued by the Director in the exercise of their interpretative powers or by the Regional Directors in the exercise of the power established in Article 6, letter BN° 1, and of the judicial jurisprudence on tax matters.

14. That the actions of the Service do not affect the normal development of operations or economic activities, except in the cases provided for by law. If the Service takes measures of this nature, such as those provided for in Article 8 ter, the taxpayer shall have the right to be notified in advance of the reasons that justified such measures.

15. Being notified of any restriction on reporting the acts and modifications referred to in articles 68 and 69, or other actions that affect the taxpayer's life cycle, the possibility of reporting modifications of another kind or carrying out any kind of actions before the Service.

16. To be informed of all kinds of entries made by the Service.

17°. Carry out the necessary corrections, except in the cases established by law and without prejudice to the corresponding sanctions under the law.

18. That, for all legal purposes and whatever the case may be, the statute of limitations or tax expiry periods established by law be respected.

19. That the taxpayer be presumed to act in good faith.

Rights under the Political Constitution of the Republic:

Freedom in economic matters (No. 21 of Article 19 of the Political Constitution of the Republic).

Non-arbitrary discrimination in the treatment that the State and its agencies must give in economic matters (No. 22 of article 19 of the Political Constitution of the Republic).

The right to property (Article 19, No. 24 of the Political Constitution of the Republic).

DEADLINES

The claim for violation of rights must be submitted in writing to the TTA within 15 business days from the occurrence of the action or omission that violates the taxpayer's rights, or from the date on which certain knowledge of it was obtained.

PROCEDURAL PARTICULARITIES

If the taxpayer has previously filed a protection appeal for the same facts (Article 20, Political Constitution), he will be disqualified from filing a claim for violation of rights before the TTA.

The TTA may issue a non-innovation order, halting the effects of the challenged act, at any stage of the proceedings.

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