Yesterday night, the Chilean IRS published a renewed version of the Tax Schemes Catalog. The authority communicated that its objective “is to describe situations of diverse nature -not necessarily of an elusive one- that may imply a potential non-compliance tax measure, so we will pay special attention to it”.

This guide added 15 additional cases to the 12 examples of transactions considered abusive published in 2016, and the 16 examples of 2017.

Francisca Villamán, Senior Associate of the Tax Area of Baraona Marshall & Cia., comments that “the description of the cases included in the 2018 Tax Schemes Catalog published by the IRS is quite generic and points to those cases in which taxpayers pursue only the objective to decrease its tax burden. The IRS highlights the preventive and dissuasive purpose of the catalog, emphasizing that there is no prejudgment of the figures as elusive. However, according to the press, the audits will point all those cases in which the taxpayers persevere in the development of the operations included in the catalog. The fact of having in consideration cases that although involve avoiding the accrual of a tax, are situations that the legislator has expressly established in the law, precisely to be applied. In conclusion, the message is that those who develop these operations will be scrutinised”.