SII Releases Revised Study on Tax Compliance Gaps in VAT and Income Tax for 2018-2020

• SII presented a revised study on tax compliance gaps for VAT and Income Tax for 2018-2020.
• Average non-compliance rates were 18.9 percent for VAT, 46.4 percent for First Category Tax, and 45.3 percent for Personal Income Tax.
• The study aims to identify where compliance gaps exist, why they occur, and how to address them.
• The revised study was presented to the Finance Commission of the Chamber of Deputies.
• The study is based on statistics from the Central Bank’s National Accounts System, base year 2018.
• The focus is on combating tax evasion, avoidance, informality, and illicit trade.
• The study identifies non-compliance in specific taxpayer groups and economic activities.
• Estimates were made for 2018-2021, with provisional estimates for VAT in 2022 and 2023.
• Results for 2021 should be viewed cautiously due to economic impacts from COVID-19.
• The study includes analysis of the formal and informal economy’s role in tax evasion.

Source: sii.cl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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