Decree 1014 of 2020 establishes the procedure and terms and conditions for the conciliation and termination by mutual agreement of contentious administrative proceedings and administrative proceedings, respectively, in tax disputes.
In this regard, the Decree determines the functions of the DIAN's conciliation and judicial defense committees, which include the competence to hear requests for conciliation and termination by mutual agreement. Only an appeal for reconsideration may be filed against the decision made by the entity.
The interested party may request the Special Administrative Unit of the DIAN to settle administrative disputes, provided that the following requirements are met:
- It is a process of annulment and reestablishment of the right, whose application was filed before December 27, 2019.
- The lawsuit was admitted prior to the filing of the request for conciliation.
- When deciding on the suitability of the settlement, there is no final judgment or ruling.
- Includes proof of payment or payment agreement reported for the obligations being settled
- Provides proof for payment of the private filing of the tax or levy subject to settlement for the year 2019,
- The request for settlement shall be submitted to the DIAN no later than November 30, 2020.
Settlement agreements for the dispute may be agreed with payment facilities for a term of up to 12 months from the date of the signing of the settlement.
The Decree also establishes the form to determine the values to be settled in the judicial tax processes, as well as the processing of the request for settlement and the presentation of the defined formula before the judge. Please note that this last step must be done within 10 working days after the signing of the agreement, which must be signed no later than December 31, 2020.
In case of failure to comply with the settled agreement, the parties will be entitled to request the payment of the amount due. In the event of failure to comply with the agreement that was approved by the judicial authority, the settlement act will provide executory value for 100% of the capital due, plus interest and updated penalties, with any payments made being charged pro rata to the capital, interest and penalties (Section 804 of the Colombian Tax Code).
The Decree also regulates the termination by mutual agreement of tax-related administrative proceedings. In that sense, it will be the interested debtor who makes the request to the DIAN, as long as he meets the following requirements:
- Was notified prior to December 27, 2019 of a special request or extension, official review settlement, arithmetical correction, valuation, value review, correction of customs taxes or resolution resolving the corresponding appeal, summons to declare, statement of objections, act of formulation of objections in exchange matters, administrative act imposing a monetary penalty of a tax, customs or exchange nature, or the appeal thereof.
- As of December 27, 2019, no claim for annulment and reestablishment of rights was filed or being filed it was not admitted.
- The request for termination by mutual agreement is filed before November 30, 2020 (without a final administrative act or the means of control of nullity and restoration of rights has not expired).
- At the date of the application, the correction of the private tax return has been made, in accordance with the notified administrative act, without including the values that would be subject to termination by mutual agreement.
- Attach proof of payment or payment agreement notified
- Provide proof of payment of the value determined in the private tax return.
The parameters for determining the values to be settled in the administrative processes are established. New formal requirements are also set out for the request for termination by mutual agreement, the procedure for submitting it and the signing of the minutes resulting from this process. This section ends with an indication of the form of payment for the securities subject to settlement and termination by mutual agreement and the facilities to comply with this.
The Decree also regulates the application of the principle of favorability at the collection stage and the requirements for the application of this principle. In addition to the foregoing, the procedure established for the application of the principle of favorability in the collection phase.
Finally, the Decree ends by regulating the transitory moratorium interest rate for the payment of tax obligations (since the entry into force of Decree 688 of 2020).