Diario Financiero – Antievasion Project
In relation to the tax compliance bill currently before Congress, the government presented new proposals. These refer to the treatment that would be given to business reorganisations, such as company restructurings, mergers or divisions. Initially, it was established that the IRS had the power to assess ‘legitimate business reasons’ when taxing these operations. The power has been replaced and is now conditional on the tax cost of the assets being maintained in some of the cases of corporate movements. In addition, the wording on situations in which the assessment power of the Service may not be limited was improved.
Our lawyer Maria Valentina Walker Andrade explains to Diario Financiero, a specialized daily, that the bill draft has been taking on board some of the recommendations of experts, although the proposed amendments still seek to expand the possibilities of the Internal Revenue Service to review reorganisations, so she would suggest being careful to allow subjectivity in this power.