It was revealed by the TPC Group that Peru is losing around $18 billion US dollars annually for tax evasion, although the country is continuously making progress in implementing international taxation tools to fight this.
TPC Group is an international consultant specialized in Transfer Pricing with offices in 15 countries in Latin America. It’s CEO, Carlos Vargas Alencastre, informed on a press note that Peru’s tax evasion amounted to $20 billion US dollars in 2017.
“The sectors that would be involved in this irregularity are informal mining, contraband, construction, wholesale and retail trade, as well as restaurants and lodging”, they said.
Other aspects that intensify the increase of tax evasion are cross-border operations from multinational groups which sometimes transfer large amounts of capital to other countries to take advantage of tan and legal benefits.
“By 2018, it was estimated that 40 percent of the profits of these companies end in Tax Havens,” he said.
Vargas Alencastre affirmed that the tax authorities and the governments of each jurisdiction are working collaboratively to improve tax compliance and minimize the harmful effects of these phenomena.
“According to the World Economic Forum, by 2018 the United States loses approximately $188 billion US dollars a year, followed by China, which loses $66.8 billion US dollars.
(Source: TPC Group)
(Cover Photo: TPC Group)
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