The bill contained in Bulletin No. 14,111‑05 seeks to incorporate a new Article 85 bis into the Tax Code, establishing an obligation for banks and financial institutions — supervised and regulated by the CMF — to provide the Chilean Internal Revenue Service (“SII”) with information on monthly balances and deposits whenever they record daily, weekly, or monthly movements equal to or greater than 1,500 Unidades de Fomento, regardless of the number of account holders involved. All such information would need to be reported in March of each year with respect to the previous calendar year.
For these purposes, current, deposit, and custody accounts would be included, as well as insurance contracts with or without cash value and annuity contracts, each of which would have a legal definition for delimitation purposes. In addition, information would have to be provided on the financial account holders, their controllers, or ultimate beneficial owners, regardless of whether they are natural persons, legal entities, separate estates, or other entities, provided they have domicile or residence in Chile or were incorporated or established in the country.
Failure to comply with this obligation would be subject to a fine equivalent to 1 Annual Tax Unit (“UTA”) for each account in respect of which any of the stated duties is breached, with an annual cap of 500 UTA. However, if one month elapses after the institution is notified of the breach without having provided the required information, this limit would no longer apply.
Separately, the intentional submission of false information by the account holder or its controllers to the financial institution would be punishable by imprisonment (presidio menor in its medium to maximum degrees) and a fine of up to 40 UTA.
The purpose of this initiative is to provide the SII with information that enables the development of improved audit and enforcement plans, thereby helping combat tax avoidance and evasion without generating negative effects on economic recovery. The information accessed by the SII would be considered confidential and could not be disclosed in any form, and may only be used to fulfil the agency’s audit and enforcement functions.
At 4:00 p.m., the Senate will begin the general discussion of the bill, followed by a vote on whether to approve the idea of legislating on the matter.
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