The National Tax Authority of Colombia (DIAN) in a recently published Ruling no: 25473 of 2015, pronounced on the general anti-avoidance rule provided under article 869 of the Tax Code. In accordance with sub-paragraph 4 of article 869 of the Tax Code, DIAN must prove no less than three of the five assumptions provided under article 869-1 of the Tax Code. Once those assumptions are proved by DIAN, the general anti-avoidance rule (GAAR) Committee may request the taxpayer to exercise his right to dispute the charges.
DIAN considered that sub-paragraph 4 of article 869 of the Tax Code must be interpreted as meaning that the net worth requirement only applies in the case of individuals. Thus, individuals with a net worth in excess of 192,000 Tax Value Units and legal entities in general may be requested to exercise their right to dispute tax avoidance charges before the general anti-avoidance rule (GAAR) Committee.
DIAN pronounced that according to sub-paragraph 4 of article 869 of the Tax Code, the general anti-avoidance rule (GAAR) Committee may request the taxpayers to appear before them for exercising the right to dispute the tax avoidance charges. In addition, even though a regulatory decree has not regulated the general anti-avoidance rule (GAAR) Committee, it must be interpreted that said Committee is the competent body for dealing with tax avoidance cases.
