Colombia Forum

dliss62
Joined 2015
Posts: 407

7 years ago

Colobia TAX REFORM

7 years ago

Here is an article that may be of interest to ALCON...

"Colombia’s chief prosecutor slammed a tax reform on Monday, the day it took effect, claiming the new tax system fails to confront the mass tax evasion that has long undermined the country’s fiscal system.
Prosecutor General Nestor Humberto Martinez sent a letter to the Minister for Finance raising stern objections regarding the extensive reform bill that took effect on January
According to Colombia’s top prosecutor, the tax reform does not provide for the misconduct of taxpayers, who allegedly are hiding assets worth as much as a quarter of the country’s entire GDP in foreign tax havens.
________________________________________
Colombia’s elite hiding more than a quarter of country’s GDP in tax havens
________________________________________
“It would be a mockery by any Colombian Prosecutor General to say that we are taking a certain, firm step against tax evasion,” said Martinez in the letter to Minister Mauricio Cardenas.
“Unfortunately the law did not foresee anything about the conduct of taxpayers who omit their duty to file income tax returns, deceptive behavior manifestly harmful to the public purse,” added Martinez.
Colombia’s lawmakers approved the bill last week which aims to raise billions of dollars in the coming years to make up for lost oil revenue and preserve the Andean nation’s investment grade credit rating.
________________________________________
Colombia’s Congress approves tax reform in bid to raise billions
________________________________________
However, the Prosecutor General has reacted furiously as he claims that the “anti-evasion article” whereby tax evaders will be punished for the “omission of assets” does not go far enough to secure full compliance with the new rules.
“The initiative accepted by the Conciliation Commission penalizes the ‘omission of assets’ in tax returns, a conduct that will not have any relevance from the criminal point of view, to the extent that it is impossible to characterize this conduct. In fact, as you know, income taxpayers do not make a list of assets, so this behavior can never be attributed, ” he said in the letter.
The reform, expected to bolster tax revenue by 6.2 trillion pesos ($2.07 billion) in 2017, is seen as crucial to preserving Colombia’s BBB investment grade credit rating and is needed to fund anti-poverty programs.
The government forecasts revenue will reach 24.1 trillion pesos by 2022.
The reform raised value-added tax to 19% from 16%, excluding basic products such as food and medications, among other changes."

Allianz Care

Flexible solutions allow you to tailor your cover to meet your needs and budget. Use Promocode: LIFE10 and get 10% off your international health insurance for life!
Get Quote

Allianz Care

Flexible solutions allow you to tailor your cover to meet your needs and budget. Use Promocode: LIFE10 and get 10% off your international health insurance for life!
Get Quote

Living in Colombia Guide

Expats in Colombia discuss the pros and cons of living in Colombia. From the Colombian people to driving to taxes and more. As challenging as it can be, expats in Colombia clearly find that there is a lot to love about a country that is a surprising expat hot spot.

Colombia Forum
Join our Colombia forum to meet other expats and talk about living in Colombia.

Contribute
Help other expats and newcomers by answering questions about the challenges and adventures of living in Colombia.

Best Places to Live in Colombia

If you're considering a move to Colombia, here are the 15 Best Places to Live in Colombia in 2023.

Healthcare in Colombia

Our guide to healthcare in Colombia covers public and private healthcare in Colombia, hospitals, vaccinations, prescription medications and more.

Cost of Living in Colombia

Expats offer insight into the cost of living in Colombia.

Moving to Colombia Guide

With its bustling cities, beautiful beaches and friendly Colombians, Colombia is an increasingly popular destination for expats of all ages. Expats in Colombia offer insightful tips for those moving to Colombia.

Real Estate in Colombia

Real estate listings in popular cities and towns in Colombia.

Pros & Cons of Living in Colombia

Take off your rose-colored glasses and learn what expats have to say about the biggest challenges and the greatest rewards of living in Colombia.

Retiring in Colombia

Advice for people retiring in Colombia.

10 Tips for Living in Colombia

If you've recently arrived in Colombia, here are 10 tips for digital nomads living in Colombia.

Additional Information:

Visit our Colombia Index for a Full List

Allianz Care

Flexible solutions allow you to tailor your cover to meet your needs and budget. Use Promocode: LIFE10 and get 10% off your international health insurance for life!
Get Quote

Allianz Care

Flexible solutions allow you to tailor your cover to meet your needs and budget. Use Promocode: LIFE10 and get 10% off your international health insurance for life!
Get Quote

Contribute
Help others in Colombia by answering questions about the challenges and adventures of living in Colombia.