On 1 August 2019, the Inter-America Center of Tax Administration (CIAT) publishes a document on Ecuador Transfer Pricing (TP) Risk Model in its official website. The SRI of Ecuador, with the coordinated support of CIAT, the United Nations (UN), the German Society of International Cooperation (GIZ) and the Mexican tax administration service (SAT), is consolidating and documenting its transfer pricing noncompliance risk model. The document which reflects its experience is entitled: “Structuring of a transfer pricing risk model in Ecuador”.
The authority has focused on related-party transactions from 2012 and 2017 and is using Artificial Intelligence and numerous risk analysis models to assign a risk score to taxpayers. Officials will focus enforcement activities on those enterprises entails a high risk rating.
