What is elusion? It's a legal strategy to minimize or avoid tax payments by exploiting certain legal loopholes or technical interpretations of tax laws. There's a significant difference from tax evasion, which involves illegally avoiding tax payments.
Currently, an electronic tax document can be issued in the name of "Final Consumer" ("CF") only when it certifies the sale of goods or provision of services worth less than Q2,500.00.
Elusive practice: The Superintendence of Tax Administration ("SAT") detected a supposed splitting of billing issued by thousands of taxpayers who extend these documents by stating "CF" instead of the name and tax identification number ("NIT") of the buyers.
How does this situation occur? There are companies that often issue multiple tax documents for a single purchase to CF, in order to evade SAT controls. It has been observed that some companies issue one invoice after another in a matter of seconds, using bill splitting.
Are there sanctions for these practices? Yes, a series of audits has been initiated, and taxpayers found involved may be sanctioned by SAT.
Just because a practice is seemingly legal doesn't mean it's entirely moral. Contact us for support on this and other tax, accounting, legal, and transfer pricing matters.
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