The Chilean tax authority (Servicio de Impuestos Internos - SII) has announced the publication of the fifth update of the Catalog of Tax Schemes on 18 January 2021. The Catalog is meant to provide certainty to taxpayers with respect to tax compliance in relation to different issues and business models that have a possible impact on the Chilean tax system, including specific cases that the SII is paying special attention to, due to the risk of non-compliance. These cases involve operations, transactions, or schemes that could imply a potential tax non-compliance and could be the subject of a more in-depth analysis within the framework of the general anti-avoidance rule.
The fifth update includes a total of 55 schemes, with the addition of 10 new schemes, including 5 that are domestic in nature and 5 that are international. Domestic issues addressed include tax schemes associated with lowering or not paying the inheritance tax, the use of non-profit foundations to avoid the payment of final taxes, and tax losses between related companies. International issues addressed include tax schemes associated with the use of returns of capital from abroad (repatriation), loans abroad between related parties, tax losses, and the abuse of international double taxation agreements.
Lastly, it is noted that the preparation and publication of this type of catalog is part of the recommendations and international best practices, especially within the framework of the OECD and the coordination bodies of the tax administrations of different countries, in which Chile actively participates.
In addition to the full catalog, information on the different tax schemes can also be viewed separately on the catalog webpage, which are sorted by year and tax type.
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