Unification ruling 24420 of 2021

By means of judgment 2441 of 2021, the Council of State unified the jurisprudence of the Council of State on what should be understood within the procedure for the liquidation of the sanction of inaccuracy regulated in articles 647 and 648 of the Tax Statute, when by means of an Official Review Settlement a balance in favor that was imputed to the next taxable period is modified or rejected.

In this judgment, the company requesting the Official Vat Review Settlements by the DIAN had omitted income that is actually considered taxed, by disguising a purchase and sale operation with a user contract.

To the VAT returns that the company had submitted, the Tax Authority filed a penalty for inaccuracy, given that the company declared income obtained as taxed and the income if it was taxed

Articles 647 and 648 of the Tax Statute refer to the penalty for inaccuracy in tax returns and the Council of State in the aforementioned judgment established that the following rules must be followed:

1. "In the event of the inadmissibility of a balance in favor that has already been imputed to the following taxable period, the mechanism provided by law for its recovery was the restitution of the same, following the procedure provided for in Article 670 of the Tax Statute.
2. The calculation of the penalty of inaccuracy, within a process of official determination, by means of which a balance in favor that was subject to imputation to the following taxable period is modified or eliminated, must be carried out by maintaining the balances in favor.
3. if the preceding rule is applied, the taxpayer must return the amount equivalent to the unfair balances in favor that were imputed".