The Organization for Economic Cooperation and Development (OECD) published the report of the second phase of tax expenditure in Colombia, Tax Policy Review, in which it reviews the reference tax system (“benchmark”) with respect to which the tax expenditures, that is, the current system, and an analysis of that gap between the Colombian model and the tax reference.
(Read: One in three Colombians considers that they should not pay taxes).
The OECD thus presents a report that deepens some of the recommendations that it presents in 2021, in the first phase of the study, where it is recommended, among some points, the publication of an independent annual report on this subject, which List the expenses and quantify the foregone tax revenue associated with them.
The OECD also points out the need to improve access to information that enables the quantification of tax expenditure.
During this year, the Directorate of National Taxes and Customs (Dian) and the Ministry of Finance and Public Credit, together with the OECD, developed Phase II of the analysis of tax expenditures after what was concluded in the report of the Commission of Experts on Tax Benefits, insofar as Colombia makes a excessive and systemic use of tax expendituresto correct the structural deficiencies of the tax system.
(Also: How to fill out your income statement and what supports it must contain).
Thanks to this, the Dian reported that it will seek to publish a report annually in two courts. “In the first quarter of each year: report of tax expenses in the Tax on the Income of Legal Entities and the Value Added Tax – VAT. In the second quarter of each year: Report of tax expenses of the Income Tax of Natural Persons”, the entity said in a statement.
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