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Reform would expose tax dodgers

April 26, 2012

Broad Front Party lawmaker José Maria Villalta presented a law reform to disclose names and debts owed to the Tax Administration.

The initiative is supported by all Legislative Assembly parties and even by the Executive Branch, in a bid to promote fiscal transparency.

The motion of the Broad Front Party introduces a reform to Article 115 of the “Code of Tax Regulations and Procedures,” related to the use of information. Under the reform, “information about the names of individuals and legal entities that have tax debts to the Tax Administration, and the amount of such debt, will be publicly accessible.”

The motion also empowers the Tax Administration to publish lists of persons or companies that have not submitted tax declarations, and those engaging in economic activity without registering as taxpayers. Currently, the law considers that information as secret and penalizes disclosure.

Next steps include a discussion of the motion among lawmakers in the Legislative Assembly.

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