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Alex Contreras on the ruling of the TC: “Companies will end up financing themselves with the State”

Alex Contreras on the ruling of the TC: “Companies will end up financing themselves with the State”

The head of the MEF also remarked that the decision of the Constitutional Court could mean a cost for the country of S/12,000 million.

The Minister of Economy and Finance (MEF), Alex Contreras, this Thursday again referred to the recent ruling of the Constitutional Court (TC) that prohibits the collection of default interest to companies that maintain debts with the Peruvian State. In this sense, he maintained that this decision will allow the companies to end up financing themselves with the state administration.

“There are two pernicious aspects of the sentence. First, the cost that it could mean for the country is S/12,000 million in income that Sunat has earned legally. The second thing is that, for a tax system to work, there must be incentives to pay taxes, what the TC sentence generates is a perverse incentive to go to court, expect to litigate in court for 15, 20 , 30 years and that the debt is liquidated so that, if the Sunat agrees with you, you will end up paying the same without interest or compensation. That is to say, companies that are going to end up financing themselves with the State”detailed the head of the MEF.

In addition, he mentioned that the ruling may further reduce the collection capacity of the State because it encourages going to the Judiciary. “Very reputable lawyers say that the TC, through a ruling, is legislating,” he added.

It should be noted that, on February 8, the TC, as a result of a lawsuit filed by the Maxco company against Sunat and the Tax Court (TF), established as a binding constitutional precedent that no tax debtor should be charged default interest provided for in the article 33 of the Tax Code after expiration of the deadlines at the Sunat, TF and/or Judiciary level.

Source: Larepublica

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