Demystifying the assets protection. Its tax and criminal consequences.

Abstract

There is a general idea among tax debtors that, given the existence of tax contingencies identified or not by the Tax Administration, correction is not possible or, if possible, is too expensive.
Therefore, it is advisable to carry out various actions with no other objective but to protect its assets. For such purposes, among others, the transfer of the assets in favor of third parties is resorted to. The further objective is to prevent the Tax Administration from carrying out the collection of the tax debt. This article looks at the tax and criminal consequences of a tax debtor protecting assets, intending to explain why tax debtors should not do this, because it does not give absolute security. It can also mean the initiation of criminal actions against those
considered responsible. The analysis of the tax regulations and the comments of the specialized
doctrine has allowed us to conclude that the protection of assets is only relative in the fiscal and criminal spheres. The actions carried out by tax debtors to avoid the collection of the debt, may still be subject to the scrutiny of the administrative entity, if the faculty of determination or collection is not prescribed. In addition to being subject to criminal liability against the legal
representatives of the companies involved in the asset, as mentioned above, protection actions.