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Ecuador Amends Commercial Code to Eliminate Smuggling and Tax Evasion

Article Summary:

Ecuador is seeking to add to its laws over 969 article amendments to its commercial code. The mega-reform seeks to make transparent the many activities carried out by investment traders as well as to prevent irregularities in the industry such as smuggling and tax evasion.

Photo Credit: Ecuador Asamblea Nacional

Original Article Text From Ecuador Asamblea Nacional via Google Translate :

Amendments to the Commercial Code Seek to Prevent Smuggling and Tax Evasion

Assemblyman Fernando Caceres, author of the draft amendments to the Code of Commerce, said that in establishing a body of law articulated by which seeks to make transparent the activity carried out by traders in order to prevent irregularities such as smuggling or evasion of end taxes and informality.

He said that the country more than four million people are part of the economically active population (EAP), of which, 50% work in the informal sector, according to figures from the National Institute of Statistics and Censuses (INEC), and many activities, including, small street vendors are falling into the informal sector because they are not covered within the Code, so the first step in controlling this phenomenon will be undertaken in the country a new record with regularize the accounts leading vendors.

Under the bill, merchants that have a capital of five thousand dollars will be required to enroll in the Tuition Book Trade in the Trade Register of the canton to which they belong, likewise, it is determined that those who have a capital rotation of 140 000 dollars or more, the accounts should be in at least four books: Diary, Mayor, Inventory and Cash.

He explained that this record also includes the runners, including real estate, the Hammerers, commercial agents and brokers, as there are people who have extra income but fall in an informal, because they have the corresponding control.

Fernando Caceres said that according to the National Economic Census 2010, developed by the INEC, the country has 511 130 economic establishments, of which 88 913 are in Guayaquil, so reiterated that the reform seeks to make transparent the activity carried out by traders.

The lawmaker added that the document containing 969 articles, establishing also other aspects that support the daily activities of the sellers, so for example, if between the date of the contract and delivery of the product decreases the economic conditions of the purchaser, trader is not obliged to deliver the goods, even when given time to pay the price.

He said the law determines that compliance with some rights for those related to commercial activity, such as payment of fair wages and insurance affiliation.

Link to Original Article:

From Ecuador Asamblea Nacional

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