Lexology Getting The Deal Through (GTDT) published the eighth edition of Tax Controversy and Andrea Moya and Francisco Rosales, partners of CorralRosales, prepared the Ecuadorian chapter.
In the chapter, they answer essential questions related to tax law in Ecuador, especially the different mechanisms taxpayers have to challenge administrative acts issued by the Tax Authorities such as tax assessments or tax settlements. Additionally, they respond to questions about the legislation, the way it is organized and how to ensure compliance with tax laws and regulations, among other aspects.
Andrea with more than 10 years of experience, and Francisco with 40 years of trajectory, offer a precise point of view on the status of tax-related issues in Ecuador.
“There are two typical procedures that the tax authority applies to review a tax return: a difference notice and a tax assessment procedure.
The difference notice is a fast-track assessment procedure by which the tax authority notifies the taxpayer of any differences found in the tax return compared with information available to the tax authority and gathered from third parties […].
The tax assessment procedure is initiated with a formal notice issued by the tax authority by which it requires information from the taxpayer and from third parties and issues a draft of the tax assessment. Likewise, the taxpayer may either pay the amount established by the authority or provide sufficient evidence to challenge the differences noted by the tax authority within 20 working days. If the tax is not paid or if the tax authority considers that the differences have not been duly justified it will issue a formal tax assessment.” indicated our partners for the publication of GTDT.
If you want to see the full chapter, click here.