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Guatemala Caves Like the Rest, Moving Forward with Tax Information Agreements

Article Summary:

Guatemala must sign 12 bilateral agreements of the exchange of tax information if they want to be removed from the gray list of countries associated as tax havens. First up in January is a signed agreement with Australia, followed by France, Canada, Mexico, Argentina, Netherlands, San Marino and South Korea. Negotiations are in process with Nordic countries Norway, Finland, Denmark, Sweden, Greenland, Iceland and the Faroe Islands.

Photo Credit: America Economia

Original Article Text From America Economia via Google Translate :

Guatemala Signed Tax Information Agreement with Australia
During January, at Guatemala first Convention the country could sign a Tax Information Exchange (TIEA) with Australia, however, that agreement, like other pending may not be applied if it fails to disclose bank secrecy and have open access to tax matters, as the requirements of the OECD.

Guatemala must sign 12 bilateral agreements of the exchange of information and introduce them and if the want to be removed from the gray list of countries not cooperating on tax or spending and continue to run risks to be on the list of tax havens.

Manfredo Chocano planficiación manager of the Superintendency of Tax Administration (SAT), said the agreement with Australia could be officially signed in the first weeks of January.

According to the official, is expected also to concluded negotiations with the Nordic countries Norway, Finland, Denmark, Sweden, Greenland, Iceland and the Faroe Islands, and initial the text seeks to end in January 2012.

In addition, contacts have been established and exchanged text to start the negotiation with France, Canada, Mexico, Argentina, Netherlands, San Marino and South Korea, said the SAT.

Although it managed to sign these agreements, Guatemala continue in the lists of countries not cooperating on tax that makes the Organization for Economic Cooperation and Development (OECD), and a payroll of France, because it can not be applied unless meets the three requirements of the agency, said Chocano.

The pending issue is to open bank secrecy so that the government can access that information when necessary.
This initiative has stalled in Congress, as members seek to include modifications to the original proposal and that a judge is to decide whether the information should be provided by banks to the SAT.

“This is not to eliminate bank secrecy, what is sought is an exception to provide the country with a basic tool for implementing controls the tax system,” said Chocano.

Of the three requirements, the date Guatemala has approved the law that companies must eliminate bearer shares and are nominal, and established the use of international accounting and auditing.

Good effect
Superintendent Rudy Villeda said that by passing the SAT’s ability to disclose information to banking supervision will be strengthened and the collection will have a preliminary increase Q400 million annually.

He added that the newly passed December 2 was approved by the Council of Ministers and Secretaries of Treasury and Finance Central America, Panama and the Dominican Republic and the Council of Ministers of Economy of Central another tool.

This is a Technical Note for Guidance (NTE) on the Convention on Mutual Assistance and Technical Cooperation between Tax and Customs Administrations of Central America, signed in April 2006.

The adoption of the NTE was recommended by the Global Forum on Transparency and Exchange of Information in Tax Matters, so you can count as four agreements valid for each of the countries of Central, he said.

Pavel Centeno, assigned to serve as finance minister in the next government, said the new administration is interested in signing the agreements and that he had information that there is already consensus among the benches and there are enough votes to pass legislation giving access banking information to the SAT.

“Not that anyone would be judging their accounts, but will give the SAT the power to request banking information in cases of taxpayers who pay no taxes or any abnormalities,” said Centeno.

Link to Original Article:

From America Economia

Latin America Investment News on Viva Tropical