ey-global-tax-policy-outlook-for-2015

Chile
Taxes on wages and employment
•
Revenue from such instruments will not be levied until
it is actually withdrawn by the individual, or until a cap
•
tax reform are to take place in 2017.
VAT, GST and sales taxes
• Relevant changes to VAT shall take place in 2016.
• The right-wing opposition, on the other hand, is having its
scandal on illegal campaign funding, which has triggered
criminal investigations and tax audits affecting several
politicians.
2.7 Current tax policy and tax administration
leaders
• Michel Jorrat, IRS Commissioner
•
key leader of the tax reform
2.5 Fiscal stimulus in 2015
2.6 Political landscape
• 2015 is the second year of the Bachelet administration.
reform, and 2014 certainly did not come up short with it,
as both major tax and education overhauls entered into
Congress for discussion. The former has already passed
(though still pending implementation), and the latter is
currently undergoing a heated discussion. 2015 will also
already set in motion.
• All of the above projects responded to popular claims
administration (2010-14). However, the actual content of
the reforms shows spots of controversy even within the
Constitutional reform is also on the agenda in 2015, while
the opposition has begun talking of “reform frenzy.”
•
convince voters that the reforms are the right actions
to take, and that they will not have a negative effect on
employment and the economy (which was not running as
many felt it should be at the time Michelle Bachelet took
announced will be introduced to debate.
2.8 Key tax policy changes in 2014
• Nearly all of the 2015 tax policy changes will be a part of
the progressive implementation of the 2014 tax reform
(whose biggest effects will commence in 2017; see the 2015
changes above in 2.4).
• From an overall perspective, 2015 will see a tax
administration that is very focused on issuing key
instructions for the proper implementation of the reform
(as there are many unresolved technical issues). The new
Commissioner also seeks to distinguish his tenure as one
focused on tax evasion and avoidance, and from that
perspective — and especially considering the implementation
probably see a more aggressive, substance-oriented tax
administration.
• Therefore, the main tax policy change we will likely witness
the rest of the reform is a more technical issue). Previously,
Chile did not have a general, comprehensive set of such
avoidance rules (SAARs). Most importantly, Chilean
legislation did not formally acknowledge the “substance
over form” principle, which for many decades led to a rather
“formalistic” approach to several tax issues. In recent years,
were adopted in 2012), the Chilean authorities have made a
gradual yet steady shift from this approach, as audits began
to contain more business-oriented questions and the courts
started to hear words such as “tax planning” and “business
purpose” more often.
•
as the Chilean tax administration will have express powers
to qualify an operation as “abusive” or “simulated” for tax
purposes, disregarding its legal or contractual form.
The outlook for global tax policy in 2015 |
55