Article 35 - Tax Evasion Offense

Tax Evasion under the provisions of this Law includes intentionally committing any of the following acts:

1. Failure to register for Tax purposes.

2. Failure to submit the Tax Return or pay the Tax Due within the prescribed deadlines for submitting the return or making the payment of the Tax or advance payments.

3. Submission of a Tax Return that includes incorrect data and information, or that contradicts the records, documents, accounting books, or financial statements.

4. Alteration of data in commercial books, agreements, documents, records, data, materials, purchase or sales invoices, or any other materials with the intent of misleading the Bureau by understating profits, inflating losses, affecting the computation of the Tax Due, or obtaining a Tax advantage.

5. Submission of incorrect, forged or counterfeit data, documents, records, accounting books, financial statements, or invoices with the intention of not paying the Tax Due in whole or in part, or to obtain a Tax deduction, exemption, refund, or any Tax advantage.

6. Concealing or failing to disclose one or more activities subject to Tax.

7. Destroying or concealing data, documents, records, accounting books, financial statements, invoices or materials that must be retained, thereby affecting the Bureau's ability to verify elements of income computation and the Tax Due.

8. Failure to maintain records, accounting books, financial statements, and all documents, invoices, and materials that must be retained in a regular manner.

Whoever commits any of the Tax Evasion offenses specified in Paragraph A of this Article shall be punished by imprisonment for a period of no less than three months and not exceeding five years, and by a fine of no less than the amount of the Tax Due and not exceeding three times its value, or by one of the two punishments. The offender or multiple offenders shall be jointly and severally liable for paying the Tax Due in cases that require it.

The penalty stipulated in Paragraph B of this Article shall be doubled in case of repeated commission of the crime within six years from the date of the issue of the final conviction.

Without prejudice to the criminal liability of natural persons, the Entity or legal person shall be held criminally liable where any of the crimes stipulated in this Law is committed in its name, on its behalf, or for its benefit by its, agents, representatives, or any of its employees, and shall be punished by a fine not exceeding twice the maximum fine prescribed for the crime.

The responsible managers of the legal person, irrespective of their titles, who are in charge of the actual management of that person, shall be held liable if any of the crimes stipulated in this Law are committed as a result of their actions, omissions, consent, cover-up, or gross negligence.

The High Criminal Court shall have jurisdiction over the crimes referred to in this Article, and its rulings may be appealed before the High Criminal Court of Appeal.

The court shall expedite the hearing of Tax Evasion cases, and in all cases, the crime of Tax Evasion shall be considered a crime against honour and honesty.

A criminal case for Tax Evasion crimes may only be initiated upon the request of the Chief Executive Officer or his delegate.

The criminal case for the crimes stipulated in this Article shall lapse after ten years from the day the crime was committed.

Without prejudice to any more severe penalty stipulated in any other law, it is permissible to settle all or some of the crimes stipulated in this Article. The Chief Executive Officer or his delegate may, upon a written request submitted by the accused or their representative, agree to a settlement in cases of Tax Evasion. Such a settlement may occur either before the initiation of legal proceedings, provided that the accused pays an amount equivalent to 100% of the Tax Due, or during the legal proceedings before the competent court, provided the accused pays an amount equivalent to 150% of the Tax Due. If a final judgment has been issued, a settlement is permissible in exchange for paying an amount equivalent to 175% of the Tax Due. These payments will be made in addition to the value of the Tax Due, if any. Acceptance of the settlement shall result in the termination of the criminal proceedings, and if the settlement is reached after a final judgement has been issued, the execution of the penalty shall be suspended by order of the judge.