TIEA agreement between Chile and Argentina

8/2/2019 TIEA agreement between Chile and Argentina

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combat tax fraud, evasion and avoidance and any other tax offence within their respective

jurisdictions and develop improved information sources for tax matters.

1.2 SCOPE OF APPLICATION

Information shall be exchanged to fulfill the purpose of this Agreement without

regard to whether the person to whom the information relates is, or whether the

information is held by, a resident or national of the States of the Contracting TaxAdministrations.

ARTICLE 2

TAXES COVERED BY THE AGREEMENT

2.1 TAXES COVERED

This Agreement shall apply to the following taxes:

a) In the case of the Argentine Republic:

-income taxes

-taxes on personal property

-taxes on minimum presumed income

-valued added tax

-taxes on liquid fuels and natural gas

-excise taxes

In the case of Chile:

-taxes contemplated in the law on income taxes

-valued added tax

-additional and special taxes contemplated in the law on valued added atx

- Tobacco taxes

- fuel taxes


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2.2 IDENTICAL, SIMILAR, SUBSTITUTIVE OR ADDITIONAL TAXES

This Agreement shall also apply to any identical or similar tax imposed after the date of

signature of the Agreement, in addition to or in place of the existing taxes.

The Competent Authorities of the Contracting Tax Administrations shall notify each other,in a timely manner, of any change in their legislation, as well as decisions of administrative

and/or judicial courts, which may affect the obligations of that Contracting Tax

Administration pursuant to this Agreement.

ARTICLE 3

DEFINITIONS

3.1 DEFINITIONS

In this Agreement,

a) The term Argentina means the Argentine Republic.b) The term Chile means the Republic of Chile:

C) The term Tax Administration:

I) In the case of Argentina: The Federal Administration of Public Revenues.II) In the case of Chile: The Internal Tax Service

d) The term Competent Authority means:

I) In the case of Argentina: The Federal Administrator of Public Revenues.


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II) In the case of Chile: the Head of the Internal Tax Service.e) The term National means any citizen or natural person and any legal entity or any

other collective entity, deriving its status as such from the laws in force in each of the States

of the Contracting Tax Administrations.

f) The term Person includes any individual, legal entity, or any other collective entity,

group of persons or patrimony subject to tax according to the laws of each State of theContracting Tax Administrations.

g) The term Tax means any tax to which this Agreement applies.

h) The term Information means any fact or statement, in any form whatever, that may be

relevant or material to the administration and enforcement of taxes covered by this

Agreement, including among others:

I) The testimony of individuals,II) The papers, records or personal property of a person or State of the Contracting

Tax Administrations, and

III) Expert opinions, technical concepts, valuations and certifications;

i) The term Applicant Tax Administration means the Contracting Tax

Administration applying for or receiving information; and the term Requested Tax

Administration means the Contracting Tax Administration providing or requested to

provide information.

3.2 UNDEFINED TERMS

Any term not defined in this Agreement shall have the meaning which it has under the laws

of the States of the Contracting Tax Administrations concerning taxes covered by this


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Agreement according to the laws in force at the moment in which the specific issue to

define is created.

ARTICLE 4

EXCHANGE OF INFORMATION

4.1OBJECT OF THE EXCHANGE

The competent authorities of the Contracting Tax Administrations, within the

framework of the object of this Agreement, shall exchange information to administer

and enforce their domestic laws concerning taxes covered by this Agreement,

including information for the purpose of:

a) Determination, assessment, and collection of such taxes, as well as - if applicable-

the determination of patrimonial changes, consumption or disposition of assets

b) Recovery and enforcement of tax claimsc) Investigation or prosecution of alleged tax offences and violations of tax laws and

regulations.

4.2 REGULAR OR AUTOMATIC INFORMATION

The competent authorities of the Contracting Tax Administrations shall regularly or

automatically transmit information to each other on any operation or taxed income, tax

exempted or non taxable, obtained or carried out in Chile by specified tax payers being

residents or citizens of Argentina, as well as of those operations or income that specified

tax payers being residents or citizens of Chile obtain or carry out in Argentina, regarding

the taxes established in Article 2, paragraph 2.1 and the information referred to in Article

4 paragraph 4.1, hereof.


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For this purpose, the Tax Administrations shall exchange between them on a year to year

basis, without prejudice to the supplements or rectifications that may apply, a listing with

the information referred to in the previous paragraph.

This information shall be delivered in Spanish, to the competent authority of each

Administration, through the technological media complying with the security conditions

appropriate to ensure the confidentiality of the information being exchanged, identifying

if necessary, the subjects participating in the relevant operation, their business activity,

domicile, the characteristics of the income or operation originating it, amount, date orany other relevant information.

4.3 SPONTANEOUS INFORMATION

The competent authorities of the Contracting Tax Administrations shall spontaneously

transmit information to each other, when during the course of their own activities,

information which may be relevant to, and bear significantly on, accomplishment of

the purposes referred to in paragraph 4.1 of this Article, may have come to theattention of one of the Contracting Tax Administrations.

The information to be exchanged, shall be transmitted in the terms indicated in the

third paragraph of paragraph 4.2 hereof.

4.4 SPECIFIC INFORMATION

The competent authority of the Requested Tax Administration shall provide

information upon specific request by the competent authority of the Applicant Tax

Administration, for the purposes referred to in paragraph 1 of this Article. If the

information available in the tax files of the Requested Tax Administration is not

sufficient to enable compliance with the request, that Tax Administration shall take all

measures, allowed by its legislation, including compulsory measures, to provide the

Applicant Tax Administration with the information requested, such as:


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a) Examine any books, papers, records, or other personal property which may be relevantor material to such inquiry;

b) Question any person having knowledge or in possession, custody or control ofinformation which may be relevant or material to such inquiry; and

c) Compel, pursuant to its own legislation, any person having knowledge or in possession,custody or control of information which may be relevant or material to such inquiry, to

appear at a stated time and place and testify under oath and produce books, papers,records, or other personal property.

d) The information that may be subject to this type of exchange shall be deliveredaccording to the terms indicated in the third paragraph, subparagraph 4.2 of this Article.

4.4.1 ACTIONS OF THE REQUESTED STATE FOR RESPONDING TO A

SPECIFIC REQUEST

If information is requested by the Contracting Tax Administration pursuant to the foregoing

paragraph, the Requested Tax Administration shall obtain and provide the information in

the same form, as if the tax of the Applicant Tax Administration were the tax of the

Requested Tax Administration and were being imposed by the latter.

If specifically requested by the competent authority of the Tax Administration of the

requesting Tax Administration, the requested Tax Administration shall observe the

following procedures and forms to provide the information requested:

a) to include the date and place to receive the declaration or to submit books, documents,

records and other tangible goods.

b) to put the person making statements or submitting books, documents, records and other

tangible goods under oath.

c) To obtain for examination, without altering them, the original books, documents, records

and other tangible goods.


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d) To obtain or submit authentic copies of original documents (including books,

documents, statements and records)

e) To determine the authenticity of the books, documents, records and other tangible goods

submitted.

f) To make questions to the person submitting books, documents, records and other tangible

goods about the purpose for which the submitted material is or was kept, and the way in

which the keeping procedure was carried out.

g)To allow the competent authority of the requesting Tax Administration to submit writtenquestions to be answered by the person making a declaration or is submitting books,

documents, records and other tangible goods;

h) To carry out any other action not contravening the laws or not incompatible with the

administrative practices of the requested Tax Administration; and

i) To certify compliance with the procedures requested by the competent authority of the

requesting Tax Administration, or non compliance with the requested procedures, with an

explanation of the reasons for that non compliance.

4.4.2REGULATIONS FOR EXECUTING A REQUEST

Except as provided in paragraph 4.5 of this Article, provisions of the preceding paragraphs

shall be construed so as to impose on a Contracting Tax Administration the obligation to

use all legal means and its best efforts to execute a request. The Requested Tax

Administration shall act with due diligence, not exceeding the term of 6 months as of the

date of receipt of the request for its answer, extendable at the request of the requesting Tax

Administration for two additional months, by reason of the difficulty raised by the

requested procedure.


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In case of inability to comply with the term for responding, of difficulty for obtaining the

information or objecting to provide it, the competent authority of the Requested Tax

Administration must, inform the competent authority of the Applicant Tax Administration,

indicating the probable date on which the answer could be sent, the nature of the obstacles

or the reasons for objecting to provide the information requested, as appropriate.

4.5 LIMITATIONS TO THE TRANSMISSION OF INFORMATION.

The exchange of information referred to in this Agreement does not compel the Contracting

Tax Administrations:

a) to supply information, the disclosure of which would be contrary to public policy;b) to carry out administrative measures at variance with their respective laws or

regulations;

c) to supply particular items of information which are not obtainable under their respectivelaws or regulation; and

d) to supply information requested by the Applicant Tax Administration to administer orenforce a provision of the tax law of the State of the Applicant Tax Administration, or

any requirement connected therewith, which discriminates against a national of the

Requested Tax Administration. A provision of tax law, or connected requirement, will

be considered to be discriminatory against a national of the State of the Requested Tax

Administration if it is more burdensome with respect to a national of the State of the

Requested State than with respect to a national of the State of the Applicant Tax

Administration in the same circumstances.

4.6 USE OF THE INFORMATION RECEIVED


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Any information received by a Contracting Tax Administration shall be treated as secret in

the same manner as information obtained under the domestic laws of that State, or

according to the conditions of confidentiality applicable in the jurisdiction of the State of

the Tax Administration providing it, if such conditions are more restrictive and shall be

disclosed only to persons or authorities of the State of the Applicant Tax Administration,

including judicial and administrative bodies involved in the determination, assessment,

collection, and administration of taxes under this Agreement, in the recovery of fiscal

claims derived from such taxes, in the enforcement of the tax laws, in the prosecution of taxoffences, or in the determination of administrative appeals in relation to such taxes, and the

oversight of the above. Such persons or authorities may use the information only for tax

purposes and may disclose it in public court proceedings or in judicial decisions of the State

of the Applicant Tax Administration, in relation to such matters.

4.7 VALIDITY OF THE EVIDENCE

The information obtained by the Applicant Tax Administration shall be considered as

valid provided that it has been issued by the competent authority of the Requested Tax

Administration.

ARTICLE 5

SIMULTANEOUS EXAMINATION

5.1 OBJECT OF THE SIMULTANEOUS EXAMINATION

For purposes of this Agreement, a simultaneous examination of taxes means an

arrangement between the Contracting Tax Administrations to simultaneously examine, each

in its own territory, the tax situation of a person or persons in which they have a common or

related interest, with a view to exchanging any relevant information which they obtain.


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5.2 SELECTION OF CASES AND EXAMINATION PROCEDURES

The competent authority of a Contracting Tax Administration may consult the

competent authority of the other Tax Administration in order to determine the cases

and procedures for simultaneous tax examinations. The consulted Contracting Tax

Administration shall decide whether or not it wishes to participate in a specific

simultaneous examination. Nevertheless, none of the Tax Administrations is obligedto cooperate with all the simultaneous examinations proposed by the other Tax

Administration.

5.3 ACCEPTANCE OF EXAMINATION

Once the Competent Authority of a Contracting Tax Administration receives from

another Contracting Tax Administration a proposal for undertaking a simultaneous

examination and decides to accept it, it shall provide its acceptance in writing,appointing a representative from his Tax Administration for conducting the

examination. After receiving the acceptance from the accepting competent authorities,

the proposing competent authority shall also designate a representative, in writing.

5.4SELECTION OF THE SECTOR AND PERIOD TO BE EXAMINED

The representatives appointed by the Tax Administrations in compliance with the

provisions of paragraph 4 of this Article, by common agreement, shall determine the sector

and period to be examined for the specific case selected.

5.5 INTERRUPTION OF A SIMULTANEOUS EXAMINATION


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If one of the two Tax Administrations concludes that a simultaneous examination

cannot be carried out, it may withdraw from the examination by notifying its

withdrawal to the other participating Tax Administration.

ARTICLE 6

DIRECT COMMUNICATION OF THE COMPETENT AUTHORITIES

The competent authorities of the contracting States may communicate with each

other directly in order to carry out the provisions of this Agreement.

For that purpose, the competent authorities may appoint an official, service or an

agency from their respective jurisdictions, as person or entity in charge of beginning

the communications which are considered necessary to achieve the object of this

Agreement.

The tax administrations agree to communicate to each other the Unique Tax Number

(RUT) structure and the Unique Tax Identification Number (CUIT) as well as the

relevant calculation algorithm of the verification digit.

Alternatively, the tax administrations may define taxpayers lists classified according

to the taxpayers business activity, tax relevance or other objective characteristics forthe purposes of automatic, spontaneous or specific exchange of information, as

applicable.

ARTICLE 7

MUTUAL AGREEMENT PROCEDURE


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The competent authorities of the Contracting Tax Administrations shall endeavour to

resolve by mutual agreement any difficulties or doubts arising as to the interpretation or

application of this Agreement. In particular, the competent authorities may agree to a

common meaning of a term.

ARTICLE 8COSTS

Unless the competent authorities of the Contracting Tax Administrations otherwise agree,

the costs incurred for the execution of this Agreement shall be borne by the Requested Tax

Administration.

ARTICLE 9

ENTRY INTO FORCE.

This Agreement shall enter into force on the first day following the date of signature.

ARTICLE 10

DENUNCIATION

1. Any of the Contracting Tax Administrations may, at any time, denounce thisAgreement through notice addressed to the other Contracting Tax Administration.


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2. Such denunciation shall enter into force on the first day of the month following theexpiration of a three-month period, after the date of receipt of the notice by the other

Contracting Tax Administration.

In witness whereof, the undersigned, duly authorized under the laws governing the powers

of their Tax Administrations, have signed this Agreement.

Done at Madrid, the October 24th day of 2006, in two originals in Spanish.

Doctor Alberto R. Abad Abogado Ricardo ESCOBAR CALDERN

For the Federal Administration For the Internal Revenue Service of Chile

of Public Revenues of theArgentine Republic

Date post:	06-Apr-2018
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TIEA agreement between Chile and Argentina

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