By Francisco Orellana, Partner of the Legal and Tax / Customs Defense Area at CCL Auditores Consultores and President of the Chilean Institute of Customs Law (ICDA).
Read the letter in Diario Financiero.
Dear Editor,
The Santiago Court of Appeals confirmed the ruling of the First Tax and Customs Court, which ordered the SII to refund Walmart Chile CLP 4,814 million in VAT paid “in excess.”
In this regard, I find it interesting to comment on two points of the ruling. First, I believe that the decision highlights a longstanding discussion that greatly affects companies, related to the classification made by the SII of strictly personal rights in tax matters, preventing, for example in this case, successor companies in a corporate reorganization from using VAT credits.
On the other hand, the reasoning established by the Court is highly relevant because it sets the criterion that strictly personal rights can only originate from the law and not from the interpretation of the SII. This is linked to the general legal principle that no one may be unjustly enriched at the expense of another, thereby ultimately recognizing taxpayers’ right to obtain refunds for taxes paid to the Treasury in excess.
In any case, despite how positive this may be, it is still necessary to wait for the Supreme Court to resolve the Santiago Court of Appeals’ ruling.