The Constitutional Court has announced that this mechanism is not enforceable. The scope of the ruling is not yet known, nor on possible modulations thereof.
The Constitutional Court announced that Section 7 of Decree 678 of 2020 was declared unconstitutional.
The purpose of this new mechanism of debt relief was to allow taxpayers to access benefits in relation to local taxes that were pending payment when the Decree came into force.
The benefit consisted of reductions like this:
- Until October 31st, 80% of the capital will be paid without interest or penalties.
- Between November 1, 2020 and December 31, 90% of the capital will be paid without interest or penalties.
- Between January 1, 2021 and May 31, 2021, 100% of the capital will be paid without interest or penalties.
Although the ruling and its effects are not yet known, it will be of vital importance to study the impact in each particular case, since we must remember that even these measures were extended to those obligations that were being discussed in administrative and judicial proceedings.