The Internal Revenue Service (SRI) has identified inconsistencies in the income tax declarations of approximately 9,000 taxpayers for the 2022 fiscal year. These discrepancies were found after cross-referencing information from the national financial system, specifically data reported through the Financial Economic Operations and Transactions Report Annex (ROTEF).
The main issues detected include bank deposits and credit card transactions that were not reported in taxpayers’ declarations. The unreported amounts are estimated to have caused a shortfall of more than USD 6 million.
Damián Larco, general director of SRI, stated: “We are intensifying controls to prevent and correct behaviors that directly affect the State and all Ecuadorians.”
As part of its oversight strategy, SRI has issued preventive notifications to these taxpayers so they can review and justify the differences found. These notifications do not yet constitute a determination of tax obligations but serve as an important fiscal alert.
“Our goal is not to sanction automatically, but to give taxpayers the opportunity to explain or correct what was omitted before any determination,” Larco said.
Not all bank deposits represent taxable income. Taxpayers are advised to conduct a technical analysis to determine if observed values relate to loans received, personal funds transferred between accounts, reimbursements or refunds, sales of assets not subject to income tax, among others.
If inconsistencies are confirmed, taxpayers should file substitute declarations to regularize their situation and reduce future risks. Alternatively, they may maintain their current declaration with proper documentation; however, failure to make necessary corrections could lead to tax determinations with interest and penalties or even criminal proceedings for alleged tax fraud under the Comprehensive Organic Penal Code.
SRI announced it will continue auditing subsequent fiscal years’ declarations in order to decrease non-compliance rates and discourage evasion while promoting a culture of fairness and responsibility among taxpayers.
