The Inland Revenue Service (IRS) in Chile has issued total 7 circulars including Circulars 65 and 68 on 23rd July 2015 for giving directions won the anti-avoidance rules enacted as part of Law No. 20780. The circulars contain limitations on the application of the general anti-avoidance rules (GAAR), and the procedures set to declare exploitation or simulation are likely to be well-received by industries in the region. The Circular 65 admits the fact that the burden of proof regarding tax avoidance is on the IRS. It states that in cases where some particular taxpayers have been tried to produce specific documentation and have failed to do so, those taxpayers will not be capable of using that documentation during the trial.
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