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Fiscal Council: Decision of the Constitutional Court would affect future collection

Fiscal Council: Decision of the Constitutional Court would affect future collection

Mark position. Autonomous entity urges the court to review its sentence.

The Fiscal Council (CF) made an official statement yesterday regarding the Constitutional Court (TC) ruling that prohibits the application of default interest once the legal deadlines for resolving tax disputes have expired.

In line with the Sunat and the Ministry of Economy and Finance (MEF), the council pointed out that it is necessary to review said sentence considering that “perverse incentives can be generated that negatively affect the culture and tax collection in the future”.

In this way, the CF specified that the fiscal effect of the sentence is divided in two; First, it is estimated that the value of the debt that companies have with Sunat would be reduced by S/12,000 million.

Secondly, perverse economic incentives are generated for two reasons: it is not clear what are the deadlines applied to the Judiciary to resolve disputes, since in practice there are no such deadlines, and that the prohibition on the collection of default interest causes the debt to retain its nominal value, which implies a loss of its value over time.

Regarding this last point, Carlos Oliva, president of the CF had indicated to La República that if this were the case, everyone would seek to take their case to the Judiciary and wait 20 years for those S/100 that they owe today no longer have the same value over time. Finally, the CF pointed out that it is urgent to implement policies to reduce the high levels of tax noncompliance.

Source: Larepublica

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