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Latin America Investment News on Viva Tropical

Tired of Banking Regulations? There’s Always Guatemala

Article Summary:

To date Guatemala has signed seven of at least 12 agreements to exchange tax information, but has made little advancements in its work to pull itself off the gray list of countries who do not meet bank secrecy regulations.

Photo Credit: Prensa Libre

Original Article Text From Prensa Libre via Google Translate :

Minfin Requests Bank Secrecy Law

According to the official, this situation would limit foreign investment, nearly 10 months since the installation of the current legislature that law has not been adopted.

Centeno was concerned and stressed that risks Guatemala, even failing to invest or lose investment to other countries within the World Trade Organization (WTO). “The WTO will impose sanctions on countries that Guatemalan investors,” said Centeno.

An example is France, which annually reviews its list to discourage French companies investing or doing business in the countries of the gray list. Some of the penalties are penalties as tax rate to dividends or interest at rates higher than the other companies.

Guatemala must also comply with the signatures of at least 12 agreements to exchange tax information. A date has signed seven with the other Nordic countries and Central and searches.

According to Deputy Finance Minister Dorval Carías simultaneously be signed over 12 agreements with several countries, which would be signed in Paris, France. This event is scheduled for late November or early December.

Centeno said, but you can move forward with the agreements, one of the problems is the opposition of France to recognize the lack of bank secrecy law.

Centeno’s concern became more evident because the Constitutional Court suspended on an interim basis, another tool of control money management, which provides that transactions amounting to Q30 thousand onwards can be made only through banks . The Court made the disposition effect and repealed, that alone should be reported to Q50 thousand up.

Business rejects
The BSA also receives the rejection of the business sector. Andres Castillo, president of the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations (Cacif), said that the OECD does not ask a law to lift banking secrecy, but a law against money laundering, which the country already has, what will be reinforced with the 12 agreements that are requested and also there forfeiture law, he added.

“The issue of banking secrecy is touted as being a requirement of the OECD, which is completely false, and what we think they are doing this survey is to search for the bank tax issue, around which we fully disagree “, said the businessman.

The disagreement, as Castillo, is considered essential because the process through court order and not at the discretion of officials, because “there have been public officials and tax administration exsuperintendentes processed and therefore becomes a safety issue” .

According to Ricardo Barrientos, an analyst at Central Institute for Fiscal Studies, the passage of this law can be complicated now, he was elected as deputy president Peter Congress Muadi, industrialist who has been a director of the organized private sector.

Barrientos said that this indicates that the arguments about which violate the rights of taxpayers are excuses. He added that many taxpayers do not report their income and make evasion. He added that the three points OECD calls are considered minimal compared to the Tax Justice Network’s more demanding.

Of the OECD points in the country progressed gradually eliminate bearer shares of corporations and began to sign agreements for the exchange of information.

When asked the deputy about restarting Muadi bank secrecy law for discussion and possible approval in Congress, said that would not provide statements, which produces its work plan, which is expected later this week.

Link to Original Article:

From Prensa Libre

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