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DIAN IS NOW ABLE TO REACH COURT SETTLEMENTS WITH TAXPAYERS

The preferential treatment will apply until the 30th of September of 2017

 

Taxpayers, withholding agents, customs users and persons subject to foreign exchange penalties are now able to make court settlements with the Colombian Tax Authority according to the following criteria:

  • Lower Court Instances: If the judicial process is being reviewed by a Lower Court Instance, the Tax Administration can negotiate a settlement with the taxpayer, by lowering 80% of the penalties, interests on late payments, and price-level restatements. This settlement will be valid only if the taxpayer pays in full all the taxes, duties or levies being discussed in Court, and 20% of the penalties, interests on late payments, and price-level restatements determined by the Tax Authority.
  • Higher Court Instances: If the judicial process is being reviewed by a Higher Court Instance, the Tax Administration can settle with the taxpayer, by lowering 70% of the penalties, interests on late payments, and price-level restatements. This settlement will be valid only if the taxpayer pays in full all the taxes, duties or levies being discussed in Court, and 30% of the penalties, interests on late payments, and price-level restatements determined by the Tax Authority.
  • No taxes, duties or regional levies: When the trial is determining the validity of a penalty imposed by the Tax Authority to the taxpayer, but no taxes, duties or levies are being discussed, the settlement made with the taxpayer can reduce up to 50% the penalties imposed to the taxpayer. For that, the taxpayer will have to pay 50% of the penalties determined by the Tax Authority prior to the Court trial.
  • Tax refunds and tax credits: When tax refunds and tax credits are being discussed in trial, the Tax Authority will be able to settle for the 50% of the penalties imposed to the taxpayer, only if the last one reimburses 100% of the taxes that were refunded or credited prior to the Court trial.

The settlement request should be submitted to the Tax Authority before the 30th of September of 2017 and the Tax Authority will only be able to settle court trials in which the lawsuit was submitted by the taxpayer before entrance into force of this regulation.