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Sept. 2 — Chile's tax authority has begun inspecting the taxes of some 3,000 large companies that failed to file a new form due in March reporting information on their international businesses.
The majority of firms that hadn't yet submitted the form were concentrated in the areas of construction, financial services and retail, the government said Sept. 1 in an announcement of the reviews.
The new form, Sworn Statement No. 1,913, includes information to increase the tax authority's knowledge of large taxpayers' global operations, including details on holding companies, business restructurings and the financial instruments and derivative contracts used.
It also requires information about pre-tax profits, capital goods and relationships with related parties.
The agency said the information is need to help design differentiated strategies to focus tax audits, including analysis of transactions between related parties with an eye toward curbing tax avoidance.
“The service's aim is to assess the tax compliance of taxpayers that form part of a business group and the potential risk of harm to the Chilean tax base,” the tax authority said.
The forms were due to be presented before companies made their annual tax declaration in March. However, out of the 16,000 large companies required to submit the form, 4,288 did not, the statement said.
The companies were initially sent an e-mail advising them of the missed deadline, which led more than 1,000 to submit the format.
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