On 12 May 2016, the Chilean tax authorities (Servicio de Impuestos Internos) issued Circular No. 31, which includes the penalties applicable for failure to report cross border transactions carried on with related parties, as established in article 41 E No. 6 of the Income Tax Law.
Under the law, Chilean resident taxpayers must report cross border transactions carried on with related parties by the last business day of June of each year in respect of operations carried on during the immediate…