SERVICES
We advise taxpayers on their tax obligations
Tax and Legal Advice for SMEs and Large Companies
- CORPORATE PLANNING
- Guidance on Incorporation and Corporate Organization
- VAT in Service Companies
- Study of tax structure and burden
- New tax regimes
- Tax benefits for SMEs
- TAX BENEFITS FOR EXPORTERS
- VAT Refund for Exporters
- VAT Refund for Exporters
- REAL ESTATE
- Real Estate Transfer Taxes
- Reassessment
- Increased contributions
- PROBLEMS WITH SII
- Disallowed Expenses
- Investment justification
- Drag loss
- Defense in tax audits, summons, settlement and SII payment
- Solution to SII block
Defense, Tax Collections, Treasury
- Treasury seizures?
- Old debt?
- Are you facing obstacles at the SII (Chilean Internal Revenue Service) due to debt?
TAX COLLECTION BY THE TREASURY
Defense in tax debt collection lawsuits (VAT and Income Tax) brought by the Treasury. Definitive solution to tax debt through legal appeals. We eliminate debt and lift liens through the statute of limitations.
TAX COLLECTION LAWSUIT TREASURY DEBT
Tax collection proceedings have two phases or stages: the first administrative and the second judicial.
A.- ADMINISTRATIVE STAGE
This phase marks the beginning of the collection process, where seizures are carried out and exceptions must be filed.
Our law firm, specializing in tax defense, will resolve the Treasury seizure; we will represent you by filing the corresponding exceptions or incidents, including the statute of limitations.
The notification, demand and seizure
Once the demand has been made in one of the appropriate forms, without payment being obtained, the tax collector will personally proceed to attach the property; however, in the case of real estate, the attachment will not be effective against third parties until it has been registered in the corresponding real estate registrar.
Regarding the time limit for raising objections
The defendant may oppose the execution before the respective municipal treasury, within the period of 10 working days counted from the date of the payment request made in accordance with article 171°.
Of the admissible exceptions
The defendant's objection will only be admissible when it is based on one of the following exceptions:
- Debt payment.
- Prescription.
- Do not impede the title to the executed person.
B. JUDICIAL STAGE
At this stage, it is not possible to file objections; however, our experience in this area allows us to file the necessary legal appeals to halt the proceedings and suspend the auctions. Consult with us for tax advice to prevent the auction of your assets.
- Suspension of Auction
- Lifting of Embargo
- Protection from arrest
- Debt elimination via statute of limitations
- Statute of limitations for collection actions
- Release from collection through judicial means
Tax Crime Defense
DEFENSE IN TAX CRIME CASES
- Ideologically False Invoices
- Maliciously false or incomplete statements
- Increase in VAT tax credit.
Erroneous decisions and even ignorance of tax regulations can lead to a taxpayer, without malicious intent, being investigated or charged with a tax crime.
The subject matter is highly complex, as it involves the proper handling of Tax and Criminal regulations.
The penalty is high not only in terms of fines, but also in terms of restrictive sentences of liberty that can reach a minimum term of imprisonment (5 years and 1 day to 10 years).
TIPS
1. If your transaction was legitimate, you should not amend Form F29 in the event of an audit, so that you can later file a claim with the TTA.
2.- Request professional advice, from the auditing perspective.
THE STATUTE OF LIMITATIONS FOR TAX CRIMES
This has timeframes ranging from 5 to 10 years; for greater clarity, see the report from the Library of Congress.
See here
Main tax crimes
Article 97 of the Tax Code, in numbers 4, 5, 10, 22 and 23, and article 100, penalize various behaviors considered illicit:
Maliciously false or incomplete statements
The Tax Code penalizes the filing of maliciously false or incomplete declarations that may lead to the settlement of a lower tax than the one that corresponds, as well as any fraudulent procedure aimed at hiding or distorting the amount of the operations carried out or at evading the tax.
Increase in VAT tax credit
Likewise, taxpayers subject to VAT or other taxes subject to withholding or surcharge who fraudulently increase the amount of their credits or imputations are penalized.
Fraudulent tax refunds
The Tax Code also punishes anyone who, by simulating a tax transaction or using any fraudulent maneuver, obtains an improper tax refund.
Use of false tax instruments
The Tax Code penalizes anyone who has made malicious use of false, fraudulent or adulterated invoices or other documents, with the purpose of committing or enabling the commission of the crimes described in Article 97 No. 4 of the Tax Code.
Facilitation of false tax instruments
The Tax Code penalizes anyone who maliciously prepares, sells or facilitates, under any title, false dispatch guides, invoices, debit notes, credit notes or receipts, with or without the stamp of the Service, with the purpose of committing or enabling the commission of the crimes described in article 97 No. 4 of the Tax Code.
SII Debt Payment or Settlement
Settlements
It constitutes the act by which the SII determines the tax owed by the taxpayer, either because in its opinion it did not determine the tax obligation being obliged to do so, or because the agency considers that the declared tax does not correspond to the quantification of the taxable event.
Turns
This refers to the order directed to the taxpayer to pay a previously determined tax or fine. If there is an assessment and payment order, the latter can only be disputed if the taxpayer disagrees with the assessment that served as the basis for the payment order.
We specialize in defending taxpayers against audits, summonses, tax assessments, and tax payments made by the SII (Chilean Internal Revenue Service) in cases such as:
VAT and income tax settlement and payment by SII
1.- WHAT IS A VOLUNTARY ADMINISTRATIVE REPLACEMENT (RAV)?
Once the settlement has been notified, the taxpayer has 30 days to file a RAV (Voluntary Administrative Reconsideration) as indicated in Article 138 bis and following of the tax code and 90 days to file a claim before the TTA, which suspends the transaction.
2.- WHAT IS THE RAF (REVIEW OF AUDIT ACTION)?
When a tax audit identifies tax discrepancies and results in a tax assessment, or when a tax payment order is issued or a resolution is served that affects the payment of a tax or the elements used to determine it, the taxpayer may opt for an administrative procedure called RAF (Review of the Tax Audit Action). This means the taxpayer can take administrative action after the notified action has been taken.
3.- COMPLAINT BEFORE THE TTA
General Tax Claims Procedure
The following claims against the Internal Revenue Service's actions are subject to this procedure:
> Settlements: This constitutes the act by which the SII determines the tax owed by the taxpayer, either because in its opinion it did not determine the tax obligation being obliged to do so, or because the agency considers that the declared tax does not correspond to the quantification of the taxable event.
> Payment Orders: This refers to the order directed to the taxpayer to pay a previously determined tax or fine. If there is both an assessment and a payment order, the latter can only be disputed if the taxpayer disagrees with the assessment that served as its basis.
> Payments: Payments can only be disputed when they do not conform to the preceding draft.
Resolutions: Resolutions that affect the payment of a tax or the elements that serve as the basis for determining it are subject to appeal; and also resolutions that deny the requests established in article 126 of the Tax Code.
DEADLINES
To file a claim regarding assessments, payment orders, payments, or resolutions issued by the SII (Chilean Internal Revenue Service), the taxpayer has 90 days from the date of notification. In the case of assessments, the deadline for filing a claim will be extended to one year when the taxpayer, in accordance with the provisions of the third paragraph of Article 24 of the Tax Code, pays the amount determined by the SII within 90 days from the corresponding notification.
In the event that a voluntary administrative appeal has been filed with the SII, under the terms provided in Article 123 bis of the Tax Code, the period for claiming will be suspended from its presentation until it is resolved or considered rejected due to the passage of the period contemplated by the rule (90 days).
WHERE
Appeals may be filed with the Tax Court whose jurisdictional territory corresponds to that of the Service unit that issued the contested act. If the acts were issued by units of the National Directorate, the appeal must be filed with the Tax Court in whose territory the taxpayer was domiciled at the time of being notified of the audit, summons, assessment, or payment order.
PROCEDURAL PARTICULARITIES
Unless the amount in dispute is less than 32 UTM - about $1,500,000 - the interested party must have the sponsorship and representation of a lawyer (articles 1 and 2, Law No. 18,120).
PROCEDURAL UPDATES
Regarding claims filed from November 1, 2017, a conciliation process between the claimant and the SII (Chilean Internal Revenue Service) is established on two occasions: once the deadline for the SII to respond to the claim has passed, and, at the request of a party, once the deadline for submitting observations on the evidence has ended. In both cases, the Tax and Customs Court will convene a hearing, in which it will propose settlement terms in accordance with the new Article 131 bis of the Tax Code.
The list of witnesses may be submitted within the first 5 days of the probationary period.
Once the trial period has expired, and within the following ten days, the parties may submit in writing any observations suggested by the examination of the evidence.
LEGAL RESOURCES
The only recourse against this judgment is an appeal, which must be filed within 15 days of its notification to the parties. Filing the appeal requires the Tax and Customs Court to forward the case file to the respective Court of Appeals within 15 days, starting from the date the appeal was granted.
The appeal is given priority and taken into account by the Court of Appeals, unless within 5 days from the date of receipt of the case file in the Court of Appeals' office, either party requests the presentation of arguments.
The General Claims Procedure applies in a supplementary manner to the other claim procedures contemplated in the Tax Code.
Investment Justification
WATCH VIDEO
Disallowed Expense
Audit of False Invoices
WATCH VIDEO
Defense in case of:
Auditing
Citation
Liquidation
Complaint
TAX CRIME
ART. 97 ITEM 4 TAX CODE
Maliciously incomplete or false statements
Ideologically False Invoices
Always keep in mind that, following an audit, due to the SII's presumption of the existence of ideologically false invoices, making a correction to the corresponding Form 29, excluding said invoices, has several implications:
This is immediately passed to the treasury for collection.
The net amounts of the invoices are considered rejected expenses, and consequently a new tax payment from the SII, for income, of an amount as high as that of VAT.
The acknowledgment made when making the Rectification implies the impossibility of exercising a defense, both before the same service via RAV or RAF, and even more so of filing a Claim before the TTA.
Ideological falsehood usually covers non-existent operations or real operations with amounts or types different from what is real.
Article 23, paragraph 5 of the VAT Law (Decree Law 825) establishes how the taxpayer can prove the legitimacy of the invoice
5°.- Taxes charged or withheld on unreliable or false invoices or those that do not comply with legal or regulatory requirements and those that have been granted by persons who turn out not to be taxpayers of this tax will not give the right to credit.
The provisions of the preceding paragraph shall not apply when the invoice payment is made in compliance with the following requirements: a) With a nominative check, nominative bank draft, or electronic money transfer payable to the invoice issuer, drawn against the bank current account of the respective buyer or service recipient. b) The issuer, when issuing the check, or the bank, when issuing the bank draft, must have noted on the back of the check the tax identification number of the invoice issuer and the invoice number. In the case of electronic money transfers, this same information, including the transaction amount, must have been recorded in the bank's electronic transaction records. The taxpayer must provide the supporting documentation that proves the circumstances described in letters a) and b) above within one month from the date of notification of the request made by the Internal Revenue Service.
If the required information is not provided, after certification by the respective Regional Director, the invoice will be presumed to be false or unreliable, and the right to use the tax credit will not be granted until it is proven that the invoice is reliable.
However, if after payment of an invoice it is challenged by the Internal Revenue Service, the buyer or beneficiary of the service will lose the right to the tax credit that it may have generated, unless they prove to the satisfaction of said Service the following:
a) The issuance and payment of the check, bank draft or electronic transfer, through the original document or photocopy of the former or certification from the bank, as appropriate, with the specifications determined by the Director of the Internal Revenue Service.
b) Have the respective bank current account registered in the accounting records, if required to keep them, where payments made by check, bank draft or electronic money transfer will be recorded.
c) That the invoice complies with the formal obligations established by laws and regulations.
d) The material effectiveness of the operation and its amount, by the means of instrumental or expert proof established by law, when the Internal Revenue Service so requests.
Notwithstanding the provisions of the second, third and fourth paragraphs, the right to tax credit will not be lost if it is proven that the tax has been charged and effectively paid into the tax coffers by the seller.
The provisions of the second, third and fourth paragraphs shall not apply in the case that the buyer or beneficiary of the service has had knowledge or participation in the falsification of the invoice.
Defending Taxpayer Rights
Taxpayer Advocate: Tax Rights that the taxpayer can demand be enforced:
Taxpayer rights are recognized in Article 8 bis of the Tax Code, and mechanisms and deadlines for enforcing them are also established by law. Taxpayer advocates and accountants can and should demand compliance with these rights.
Article 8 bis of the Tax Code
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 does not initiate a new audit procedure, regarding the same facts or taxes, under the terms of article 59.
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. The foregoing shall not apply to the matters addressed in Article 161, number 10. Likewise, the right to be informed if they have been the subject of a request for information exchange, provided that it does not imply a potential breach of tax obligations, and they may in any case access it.
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 entries made by the Service. 17. To make any necessary corrections, except in the cases established by law and without prejudice to any applicable penalties. Furthermore, the Service shall keep the taxpayer informed on their personal website of all actions, requests, or interactions registered with the Service, in an up-to-date manner, for their information and monitoring purposes.
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.
20. The Service shall maintain facilities within its premises that allow for remote participation in proceedings and the submission of documents or background information in digital or physical form. It shall also facilitate electronic compliance with obligations for taxpayers who lack the necessary technological means, do not have access to electronic means, or only act through them in exceptional circumstances.
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ANTERIOR
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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.
What does tax avoidance mean?
Tax avoidance is based on the use of practices aimed at illegally reducing or avoiding tax payments. In other words, the company or individual takes advantage of legal loopholes or interpretations that deviate from the intent of the law to reduce their tax obligations.
Article 8 bis of the Tax Code
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 does not initiate a new audit procedure, regarding the same facts or taxes, under the terms of article 59.
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. The foregoing shall not apply to the matters addressed in Article 161, number 10. Likewise, the right to be informed if they have been the subject of a request for information exchange, provided that it does not imply a potential breach of tax obligations, and they may in any case access it.
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 entries made by the Service. 17. To make any necessary corrections, except in the cases established by law and without prejudice to any applicable penalties. Furthermore, the Service shall keep the taxpayer informed on their personal website of all actions, requests, or interactions registered with the Service, in an up-to-date manner, for their information and monitoring purposes.
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.
20. The Service shall maintain facilities within its premises that allow for remote participation in proceedings and the submission of documents or background information in digital or physical form. It shall also facilitate electronic compliance with obligations for taxpayers who lack the necessary technological means, do not have access to electronic means, or only act through them in exceptional circumstances.
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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).
Article 8 bis of the Tax Code
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 does not initiate a new audit procedure, regarding the same facts or taxes, under the terms of article 59.
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. The foregoing shall not apply to the matters addressed in Article 161, number 10. Likewise, the right to be informed if they have been the subject of a request for information exchange, provided that it does not imply a potential breach of tax obligations, and they may in any case access it.
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 entries made by the Service. 17. To make any necessary corrections, except in the cases established by law and without prejudice to any applicable penalties. Furthermore, the Service shall keep the taxpayer informed on their personal website of all actions, requests, or interactions registered with the Service, in an up-to-date manner, for their information and monitoring purposes.
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.
20. The Service shall maintain facilities within its premises that allow for remote participation in proceedings and the submission of documents or background information in digital or physical form. It shall also facilitate electronic compliance with obligations for taxpayers who lack the necessary technological means, do not have access to electronic means, or only act through them in exceptional circumstances.
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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).
Lifting of Blockade and Exclusion
SOLUTION TO SII ANNOTATION, EXCLUSION OR BLOCKING
The SII carries out various actions such as blocking or restricting invoices and annotations in billing records, which arbitrarily prevent companies from operating commercially. This situation has been judicially remedied by both the TTA and the Supreme Court for violating the principle of legality.
Additionally, the SII makes arbitrary entries that also violate the principle of legality, called exclusion, through which it prevents companies with tax debts, in collection at the Treasury, from making payment agreements or obtaining forgiveness of interest and fines.
WE PROVIDE SOLUTIONS THROUGH JUDICIAL RESOURCES TO THESE SITUATIONS THAT AFFECT TAXPAYERS.
1 «IN JULY 2022, WE OBTAINED IN TTA COPIAPO A JUDGMENT THAT ORDERED THE LIFTING OF THE EXCLUSION IMPOSED BY THE SII ON THE TAXPAYER»
2 «IN APRIL 2023, WE ACHIEVED THE LIFTING OF THE NEGATIVE NOTATION FROM THE SII ON THE TAXPAYER'S INVOICING, VIA ONI REQUESTED TO THE TTA OF THE MAULE REGION»
Debt Statute – Taxes
Solution to VAT and/or income tax debt.
The statute of limitations for taxes or tax prescription releases the taxpayer from the tax debt.
We free taxpayers from their tax debt. Our specialized tax advice and defense services allow you to extinguish (eliminate) your tax debt. This can be done through an exception or legal action, depending on the status of the collection process.
It should be kept in mind:
1. All debts are subject to a statute of limitations.
2.- Prescription does not operate ex officio, it must be declared judicially.
3. On the other hand, it should be noted that the statute of limitations is interrupted when the Treasury begins collection proceedings. There is a solution to this, and we specialize in it.
What is the statute of limitations for tax collection?
It is the extinction (termination or end of something) of the tax debt due to the passage of time.
It can only be requested as an exception within 10 days after the taxpayer is notified or via action before being notified, because the notification interrupts the statute of limitations.
EXCEPTIONAL ROUTE
The defense by way of exception must be filed within 10 days after personal notification of the lawsuit.
If the notification is by summons, the period for alleging prescription will begin counting from the date of the first attachment.
ACTION
This is done through an ordinary lawsuit before a civil court, and is appropriate in the case of the taxpayer not having been notified, or if the Treasury notification has been rendered ineffective.
Statute of limitations for the SII's auditing action
According to Article 6 of the Tax Code, the Internal Revenue Service is specifically responsible for the oversight and administrative application of tax provisions.
The aforementioned function of determining or settling taxes and transferring or ordering their payment into the tax coffers is subject in its exercise to the limitation that it be done in a timely manner, within the deadlines indicated by the Code in article 200.
Once these deadlines have expired, the Service's power to review, settle and issue outstanding taxes is extinguished, a principle that is absolutely ratified in Article 59 of the Tax Code, according to which, within the statute of limitations, the Service may examine and review the declarations submitted by the taxpayer.
The Tax Service must refrain from assessing or issuing tax assessments for periods beyond the legal statute of limitations established in Article 200 of the Tax Code. As an exception, taxes corresponding to such periods may be assessed or issued when the taxpayer has waived the statute of limitations.
“The Service may assess a tax, review any deficiencies in its assessment and issue the corresponding taxes, within a period of three years from the expiration of the legal term in which the payment should have been made.” (Article 200, first paragraph).
CALCULATION OF THE TERM
The three-year period in question, according to the Code, is counted from the expiration of the legal period in which the tax payment should have been made.
It should be noted that, in taxes that must be paid in installments, the statute of limitations begins to run independently for each installment of the tax, from the date on which the respective installment should have been paid.
Tax Statute of Limitations in Chile
Tax debt solution. Tax prescription, or the statute of limitations, releases the taxpayer from tax debt. First consultation free.
TAX PRESCRIPTION – EXCEPTION OR ACTION
We release the taxpayer from tax debt.
Our tax advice and specialized defense allows you to extinguish (eliminate) your tax debt.
This can be done via exception or action depending on the status of the collection.
HOW IS IT OBTAINED?
Since the statute of limitations is interrupted by notification, and all debts are notified by the Treasury from the outset, it is not possible to request immediate relief, which is a very common mistake. This should only be filed and processed by experts in the field. At R&R Lawyers, we have years of experience.
FREE CONSULTATION
WHAT IS THE STATUTE OF LIMITATIONS FOR TAX COLLECTION (TREASURY)?
It is the extinction (termination or end of something) of the tax debt due to the passage of time.
It can only be requested as an exception within 10 days after the taxpayer is notified or via action before being notified, because the notification interrupts the statute of limitations.
EXCEPTIONAL ROUTE
The defense by way of exception must be filed within 10 days after personal notification of the lawsuit.
If the notification is by summons, the period for alleging prescription will begin counting from the date of the first attachment.
ACTION
This is done through an ordinary lawsuit before a civil court, and is appropriate in the case of the taxpayer not having been notified, or if the Treasury notification has been rendered ineffective.
