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In our recent Analysis

In the Weekly Review # 25, June 30 - 2009-06-30 / 11:15

Imminent new tax reform

During the first five months of 2009, tax collections went up by 13.8% compared to the same period of last year, to $3.1 billion. Income tax collections went up even more, by 17.9%. This increase is the result of the tax reforms passed in late 2007 and the SRI's collection strategies, focused on the largest taxpayers: business groups and persons in the highest income quintiles.

The goal of the SRI is to lower the levels of tax evasion, particularly in the collection of the Income Tax. It intends to do so by increasing controls on the main companies and economic groups, which may expect periodical "visits," as assured by Carlos Marx Carrasco, the Director of the SRI.

President Correa assured that the government would promote new tax reforms. He said that the goal is to modify tax exemptions, such as the VAT and Income Tax, so that they benefit exclusively the poorest population. Carrasco proposes that natural persons should paid taxes on dividends...

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