Advances in Latin America and the Caribbean in fiscal transparency: an analysis of the period 2020 to 2025

Abstract

Abstract

This research paper analyzes the progress made in tax transparency by Latin American countries, as well as those that have joined the Global Forum on Transparency and Exchange of Information for Tax Purposes (hereinafter the Global Forum) and the Convention on Mutual Administrative Assistance in Tax Matters (hereinafter the Convention). Objective: To analyze the contribution to increased tax collection from the implementation of the Exchange of Information on Request (EOIR) and the Common Reporting Standard (CRS) in different countries, as well as to identify detected evasion schemes and analyze case law. Methodology: Qualitative non-experimental, comparative analysis (collection, evasion schemes, between countries). Document review techniques (reports, academic studies, pronouncements of international organizations such as the OECD, IMF, CIAT). Results. In the countries analyzed, there is evidence of increased tax collection and the detection of evasion schemes (through shell companies, offshore companies, price manipulation, among others). Final considerations: Promoting the Exchange of Information among Latin American countries contributes to the recovery of tax collection. The cases analyzed (Mexico, Peru, Brazil, Costa Rica, among others) show that the EOIR allows for the collection of evidence that strengthens the observations made during audits. The case law analyzed shows that the exchange of information confirms the observations detected in audits conducted by the Tax Administration.

Keywords: Tax transparency, exchange of information, tax evasion