The Internal Revenue Service (SRI) has identified that thousands of taxpayers submitted late value-added tax (VAT) returns containing fictitious sales records, in what appears to be an attempt to avoid fines. According to checks carried out by the agency, these individuals reported simulated income amounts ranging from USD 0.01 to USD 1, despite having no real economic activity.
Damián Larco, general director of the SRI, stated that more than 93,000 taxpayers may have engaged in this practice between January and May 2025. He indicated this resulted in an estimated loss of about USD 3 million for the state. “Through electronic invoicing, the SRI verified that there were no actual revenues; therefore, the taxpayers must pay the corresponding fine,” said Larco.
Those found engaging in these actions have already been notified by the tax authority and are required to immediately submit amended declarations and pay the respective fine. If they do not comply, the SRI will begin sanction proceedings which include additional penalties for non-compliance.
In response to these findings, the SRI is warning citizens—especially those who accept irregular advice from certain consultants or intermediaries—that declaring false or minimal income on overdue forms with the intention of avoiding fines constitutes a violation and may lead to further sanctions.
“The SRI urges taxpayers to seek reliable and responsible professional advice and not be swayed by recommendations that seem like immediate ‘savings’ but actually create future problems. These irregular practices promoted by advisors and intermediaries expose taxpayers to greater penalties and unnecessary tax risk,” stated the agency.
The SRI reaffirmed its commitment to continue fighting fraud and tax evasion.
