The five tax errors that expose Colombian companies to litigation with the DIAN
If the DIAN detects that these liabilities have no real backing, the company faces a pecuniary sanction and, additionally, is exposed to criminal action. Photo: AI Generated
TL;DR
- Not paying Value Added Tax (VAT) on time is the most frequent error, as companies act as collectors for the state, not owners of the funds.
- Omitting assets (properties, bank accounts, investments) in the income tax return can trigger tax sanctions and criminal action.
- Declaring non-existent liabilities to justify declared net worth can lead to financial penalties and criminal prosecution.
- Tax evasion through the non-issuance of invoices prevents income reporting and corresponding tax payments, potentially leading to business closure.
- Participating in 'invoice carousel' schemes, using fictitious invoices or costs from suppliers, exposes companies to tax audits, corrections, and serious related crimes like fraud and money laundering.