Modification to Banking Secrecy LAW 21.453

The new law replaces article 33bis numeral 2 of the tax code and creates article 85bis. "The financial entities indicated in this article must provide the Service with information on the balances of products or instruments of fundraising, investment or custody service, as well as the amounts of credits held by their holders who are natural or legal persons or affectation estates, with domicile or residence in Chile or that have been constituted or established in the country".

Investments abroad and investments made in Chile must be reported. Where each taxpayer will be able to demonstrate its supporting information with respect to deferrals or decreases with respect to final unfulfilled taxes.

The taxpayer may prove which investments were made with amounts that correspond to its capital or income not constituting income.

The information to be reported must be with respect to the following products:

Bank current accounts, Time deposits, demand deposits or demand vouchers, Demand accounts, time savings accounts, demand savings accounts, time savings accounts, time savings accounts for housing, time savings accounts with deferred drafts, Insurance contracts with investment or savings account, or surrender value, or that guarantee a capital at the end of a term, in addition to private annuity contracts, whether life or temporary.

Subject to report:

Banks and financial institutions, with respect to, taxpayers natural person and companies, subject or not to income tax.

What must be reported?

Investments, account balances, time deposits, among others.

Fines

Penalty art.97 nº4 of the CT (tax code):

• Fine of 50% to 300% of the tax evaded,
• Minor imprisonment in its medium to maximum degree.

The balance or value of the products or instruments; or the sum of credits made in these individually considered or as a whole register daily, weekly or monthly movement, equal or superior to 1,500 UF.

Delivery period?

Annually, within the first 15 days of the month of March, Information on balances and credit amounts during the calendar year shall be reported. The report will indicate:

• Ending balance recorded for each product on each day and month of the year reported.
• Sum of credits made during the month.

Privacy

Banks communicate to the owner of the data collected and sent to the SII, the identity of the person responsible for handling the data, the purpose of the processing and the legal grounds for which they were informed. However, the SII must delete the information not used in an audit process within one year.

When?

The balance or value of the products or instruments; or The sum of payments made in these individually considered or as a whole register daily, weekly or monthly movement, equal to or greater than 1,500 UF.