Tax reform: negotiation of debts with the Dian

Law 2155 of 2021 allows a transitory reduction of penalties and interest on taxes, fees and contributions of the territorial order.

It establishes the possibility of entering into payment agreements with taxpayers that avail themselves of the contentious-administrative conciliation.

The tax reform law, Law 2155 of September 14, 2021, from the point of view of the firm Posse Herrera Ruiz presents four pillars: tax measures, fight against evasion, economic reactivation and procedure. The following are the novelties corresponding to the procedural pillar, which the firm analyzes in its most recent Newsletter, Tax Area.

Refund of credit balances

A new cause for the automatic refund of credit balances is added, according to which the mechanism will proceed for producers of VAT exempt goods entitled to a bimonthly refund, provided that the deductible taxes that generate the exempt operation are supported by an electronic invoice.

Audit benefit

For taxable periods 2022 and 2023, the possibility is created to reduce the term of finality of the income and complementary tax return (to 6 or 12 months, as the case may be), provided that the net income tax is increased by a minimum percentage (35 % or 25 %, respectively) in relation to the net income tax of the immediately preceding year. Several articles of the tax reform refer to the negotiation of debts with the tax authority. The tax bulletin of this firm details them as follows:

Transitory reduction of penalties and interest.

“transitory reduction of penalties and interests for the subjects of obligations administered by the Dian, with respect to taxes, rates and contributions of the territorial order.”

A transitory reduction of penalties and interest is allowed for the subjects of obligations administered by the Dian, with respect to taxes, fees and contributions of the territorial order, which present payment arrears as of June 30, 2020 and which are paid until December 31, 2021. The reduction will be 20% of the penalties and interest originally calculated.

Conciliations in contentious-administrative proceedings

The Dian, the territorial entities and the UGPP are empowered to carry out conciliations in contentious-administrative processes in tax, exchange and customs matters, provided that 100% of the tax under discussion is paid:

–It will bepossible to conciliate for 80% of the total value of the penalties, interest and updating when the process is in sole or first instance before an administrative court or administrative tribunal.

–Ifthe process is in second instance before the contentious-administrative court or the Council of State, conciliation may be requested for 70% of the total value of the penalties, interest and updating.

– Whenthe challenged act imposes a monetary sanction of a tax, customs or exchange nature, in which there are no taxes or duties to be discussed, the conciliation will operate with respect to 50% of the updated sanctions.

In addition, the possibility of entering into payment agreements with taxpayers who decide to avail themselves of the contentious-administrative conciliation is established. Payments may not exceed a term of 12 months.

Termination by mutual agreement

The Dian may:

–Terminateby mutual agreement administrative proceedings in tax, customs and exchange matters.

–Settlewith the taxpayer up to 80% of the value of penalties and interest, provided that 100% of the tax or tax payable is paid.

This is explained in the bulletin:

In the case of exchange penalties, 50 % of the penalty that may be subject to the transaction, will apply on the reduced penalty. Additionally, the possibility of entering into payment agreements that may not exceed a term of 12 months is established.

Principle of favorability

The Dian is empowered to apply the principle of favorability within collection processes at the request of the taxpayer, joint and several debtor, subsidiary debtor or guarantor, who, as of June 30, 2021, have tax obligations that have executive merit.

Source: Actualize