According to law 1819 of 2016, adopting the structural tax reform bill approved on 23 December 2016, which introduces the following major changes to the tax administration, tax procedures and penalties:
Tax administration
The tax reform introduces 3 measures aimed at strengthening the tax administration that contains creation of the School of Higher Education in Tax Administration, adoption of an electronic modernization plan and setting of the criteria and professional experience for selecting tax officials.
Agents
Agents may file and submit tax returns on behalf of their clients.
Withholding tax returns
Tax agents may file withholding tax returns without payment if they are entitled to a credit balance above 2 times the amount of the withholding tax reported as it can be offset against the credit balance.
Statute of limitation
To audit tax returns is 3 years following the date of filing of the tax return or the last day of the deadline for filing the tax return.
Penalties
Taxpayers, who hide assets or providing wrong information on assets in their income tax returns, or providing non-existent liabilities more than an amount of 7.250 monthly minimum legal wages in their income tax return will be penalized by imprisonment between 48 and 108 months and a fine of 20% of the value of the non-reported asset and if the taxpayer amends the income tax return and pays the amounts due, no criminal offence will have been committed.
