We invite you to read the letter to the editor written by our Tax Group Director, Andrea Bobadilla, on new reporting obligations for financial institutions and taxpayers to combat informality as a result of the Tax Compliance Law.
Given the informality in financial transactions, the collaboration between the Financial Analysis Unit (UAF) and the Internal Revenue Service (SII) is essential to fight money laundering.
The UAF requires reporting all cash transactions exceeding US$10,000 and classifies as suspicious those unusual operations that, without a minimum amount, have no apparent justification, especially when multiple accounts are used for a single product. This type of operations suggests possible “fractioning” practices to evade financial and tax controls.
The recent tax reform has introduced additional controls for commercial transactions. Now, banking institutions must inform the SII when a holder receives numerous payments from different people in a specific period, which contributes to improve control and curb informality.
In addition, the buyer must be identified in cash purchase and sale transactions in excess of UF 135 UF (about $ 5 million).
These joint efforts between the UAF and the SII strengthen transparency, pursue tax evasion and promote a safer financial environment, reducing the risk of tax evasion.
Written letter:
Andrea Bobadilla | Tax Group Director | abobadilla@az.cl
