The 2013 Federal Revenue Law was published yesterday and its Transitional Article 3 includes an amnesty covering payment of federal taxes and related government charges, as follows:

  1. 80% forgiveness of tax assessment consisting of federal taxes, antidumping duties, and fines for failure to comply with federal tax obligations, other than payment obligations, arising prior to January 1, 2007.
  2. 100% forgiveness of interest and surcharges for extensions of time (Article 66-A of the Federal Tax Code), fines and enforcement costs for tax assessments arising prior to the 2007 fiscal year.

For purposes of paragraphs a) and b) above, when a taxpayer has been subject to an audit by the tax authorities during the 2009, 2010 and 2011 fiscal years, and it is found that the taxpayer fully complied with tax obligations or paid amounts found owing and is currently in full compliance, the relief will cover 100% of the obligations. The amnesty will apply even if the tax assessments in question have been contested in court by the taxpayer, provided that, on the filing date of the application for amnesty, the court proceeding have become final and conclusive or no other legal challenge against such assessment is available.

  1. 100% forgiveness of interest and fines arising from tax assessments, antidumping duties and federal taxes, other than those which the taxpayer should have withheld, passed on, or collected, as well as fines for the failure to comply with federal tax obligations (other than payment obligations) arising between January 1, 2007 and December 31, 2012.
  2. 60% rebate of fines imposed during the 2012 and 2013 fiscal years, for the failure to comply with federal tax obligations, other than payment obligations, except for those imposed as a result of filing excessive tax losses, provided that they are paid within 30 (thirty) days following the date of notice of the fine.

In order to be entitled to the above-mentioned benefits, the amount not included in each benefit must be fully paid in a single installment. No payments in-kind, accord and satisfaction, or set-off will be accepted to pay the outstanding amount.

The benefits will apply to tax liabilities assessed by the tax authorities, as well as to those self-assessed by the taxpayer, and always at the taxpayer’s request filed with the Local Tax Administration Service Office of the taxpayer’s domicile.

Tax obligations already paid are not included in the amnesty and no refund, set-off, or tax credit or claim of a positive balance in favor of the taxpayer will apply. Also, unpaid taxes arising from a criminal conviction are not included in the amnesty.

The Tax Administration Service will issue rules for the application of the tax amnesty no later than March 2013.