The Government proposes to increase the penalty for deficiency from 160% to 200%, and new penalties would be created.

The following penalties are to be amended: (i) late filing of the tax return; (ii) delinquent tax return; (iii) deficiency of the tax returns; (iv) improper tax refunds and/or compensation penalties; among others.

One of the most important changes refers to the reporting return of foreign held assets, which, if is untimely filed, would generate a penalty between 3% and 6% of the value of the assets.

For delinquent tax returns the penalty would be 160% of the unpaid tax, this would apply to different taxes.  

In regards to the tax deficiency penalty, the Government proposes to increase it to 200% when the deficiency generates a lower tax due, increases the possible tax refund in improper fashion or generates more net operating losses (“NOL”) to be carried forward in the following taxable years.   

If taxpayer voluntarily amend its tax return before starting the procedure of assessment and collection, the deficiency penalty for would be reduced either to 10% or 20% depending on whether the tax administration has previously issued a deficiency notice.