Tuesday, 06 July 2021 15:37

Treasury launches " Inspectores Fiscales sin Fronteras " program to combat tax evasion

Written by Alondra Gutiérrez

The minister of Finance, Alejandro Zelaya, participated in the launching of the “Inspectores Fiscales sin Fronteras”, program to fight tax evasion.

This program is a joint initiative of the Organization for Economic Cooperation and Development (OECD) and the United Nations Development Program (UNDP), aimed at strengthening the capacities of inspection and criminal tax investigation and a better use of information from automatic data exchange systems.

"We are aware that El Salvador, on its own, cannot effectively tackle tax evasion and tax avoidance. That fight requires broad international collaboration, to pursue evaders who do not recognize borders", said the minister of Finance.

Likewise, the general director of the Agencia Estatal de Administración Tributaria de España, said that this program seeks to train tax professionals and reduce tax gaps.

"With this program we seek to train tax professionals, reduce tax gaps and non-compliance through an effective application of the legal norms. We hope that the return for El Salvador will be excellent in the short and medium term", he said.

The program will strengthen the Unidad de Repatriación de la Evasión Fiscal (UREF) by promoting the specialization of forensic experts and auditors, through the exchange of technical experiences and best practices, in order to adapt them to our reality.

"The ultimate goal in this process is very clear: to increase tax revenues and, indirectly, to improve the level of fiscal discipline and respect for tax rules by taxpayers", emphasized the minister of Finance.

In the Central American region, El Salvador becomes the third country to benefit from the program, marking a new milestone of participation in OECD projects.

Likewise, it will continue to use the legal tools considered by the Multilateral Convention on Mutual Administrative Assistance in Tax Matters of the OECD, ratified in 2019, making it the ninth country in Latin America and the fourth member of the Central American Common Market signatory of the most comprehensive international instrument to promote cooperation against this scourge.

With the implementation of this program, the Government reaffirms its commitment to combat tax evasion and increase tax collection to finance the necessary works for the benefit of the salvadoran population.