Legal Bulletin


The Government proposes to establish criteria to re-characterize or reconfigure tax abusive operations, and defines a special procedure to do so.

The project seeks to establish the procedure and the authority granted to DIAN to define the occurrence of tax abuse, in one or more transactions carried out by taxpayers.

For this purpose, the law would grant full powers to DIAN to re-characterize and reconfigure operations, or to ignore their effects, by issuing the administrative acts to propose and liquidate taxes, interest and penalties.

The Tax Administration would be granted special authority to remove the corporate veil in cases of abuse, extending tax responsibilities to partners, shareholders, directors or managers.

The Tax Administration can initiate a special procedure against taxpayers using tax shelters and other tax abusive schemes or arrangements.