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Penalties for Income Statement Breach


We are in that time of year where we are clarifying doubts, asking for help, gathering documents and working on everything concerning the income statement before the DIAN. As human beings there is the possibility of making mistakes during this process but we must be careful with some of them that are more common than you can think and can bring us legal or economic sanctions that are much better to avoid. These are:

INCOME STATEMENT OUT OF TIME:

  • It is very important to consider the dates on which you must file your income statement. They are currently the last deadlines according to the last two digits of the Cédula (Economy and Business - Time, 2020).

  • In order to avoid making a declaration out of time, it is already possible to do so in advance of the established dates.

  • The penalty that corresponds to this fault is between 5 and 10 percent of the tax charged, for each month or fraction of month of delay (Economy and Business - El Tiempo, 2020). This penalty applies even with one day of delay and late taxes.

FAILURE TO FILE INCOME STATEMENT:

  • The DIAN has 6 main income statement requirements, if you meet at least one, you must file it. Sometimes the statement is discarded for not complying with all of them but you need to take into account the above.

  • Please note that failure to submit the declaration even after the due dates results in a high financial penalty. The penalty could be up to 20 percent of the gross income or the value of the taxpayer’s bank appropriations. (Economía y Negocios El Tiempo, 2020).

PRESENTATION OF INCOME STATEMENT BUT PAYMENT IS NOT MADE:

  • If this situation arises it is important that you get in touch with the DIAN as soon as possible, if you are first contacted by the institution (coercive collection) a worse scenario may arise.

  • Keep in mind that the coercive collection can lead to seizure of accounts and real estate. (Economía y Negocios - El Tiempo, 2020).

WRONG VALUE IN THE PAYMENT:

  • It is very important to have the right advice in order to do not make this mistake and to perform mathematical operations to know the exact values. It should be mentioned that even a numerical mistake can result in a penalty that varies between 10 and 20 percent of the value of the tax that was initially stopped by mistake. (Economía y Negocios - El Tiempo, 2020).

  • It is imperative to record all assets and liabilities in a correct and complete way because the reporting of wrong information can represent a sanction by the tax authority up to 200 percent of the value of the tax not settled.


For more information, see:


At LARM Colombia we have an expert team in tax matters ready to guide and advise you. Contact us here to receive more information related to the income statement.


Keywords: DIAN, Income Statement, Expats, Foreigners, Colombia, visas, sanctions.


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