Tax Audit and Defense

Our team of professionals has extensive experience in providing highly qualified services in tax law, which distinguishes us to face possible objections by the Tax Authority and defend you with strategies that allow a favorable outcome.

What is a Tax Audit Procedure?

The tax audit process comprises a set of tasks aimed at urging taxpayers to comply with their tax obligations, ensuring the correct, full, and timely payment of taxes.
For this purpose, the SII (Servicio de Impuestos Interno or Internal Revenue Service) is authorized by law to examine the returns filed by taxpayers within the statute of limitations it has, and review any deficiency in their returns, to assess a tax, and remit the taxes due.

What is the Audit purpose?

  1. Tax compliance control:
    • Tax compliance control corresponds to the actions carried out by the SII to evaluate the taxpayers’ behavior in all interactions given by periodic obligations contemplated by the tax legislation and established by the SII.
  2. Tax non-compliance auditing:
    • Tax non-compliance auditing is related to the SII permanent task of detecting taxpayers who evade taxes and ensuring that these taxes are paid in full into the tax coffers. For this purpose, emphasis must be placed on the determination of non-compliance indicators that allow targeting the taxpayers’ group sectors to be audited. A clear example of this is the Auditing Plans.
  3. Tax fraud prosecution:
    • This is carried out through an analysis aimed at detecting those areas and sectors of activity most prone to tax evasion, which by their nature impose serious economic and social damage to the country. The target aims to weaken the economic and financial capacity of individuals and organized groups carrying out illicit activities to cut off the flow of income that allows the continuity of their operations.

What happens when the Tax Audit is concluded?

The SII must verify and check the determination of tax obligations by the taxpayer, which may be modified when the Tax Authority finds an omission or inaccuracy. This means that the taxpayer may contradict such acts, provided that he does not agree with them.

What does our tax defense consist of?

Our tax defense involves exercising all the mechanisms enabled in the current legal framework to exercise the right to contradict the acts issued by the Tax Authority with respect to which the client does not agree and intends to reverse it in administrative or judicial proceedings, as appropriate. An adequate tax defense implies filing the appropriate appeal, request, and procedural remedy in accordance with the acts issued by the Tax Authority, which we design and implement defense strategies, with successful results in the administrative and judicial stage.

We recommend our partner firm VAG Global if you have any questions about