Business sectors review the effects of the the draft Organic Law to prevent the evasion of income tax on inheritances, Legacies and Donations. Last Friday, the government submitted the bill to the Assembly, which consists of two sections and a transitional provision.
This does not change the current chart that imposes taxes in certain cases of patrimonial increase. But partially amends the Law on Internal Taxation and the Organic Code of Territorial Organization, Autonomy and Decentralization (COOTADfor its Spanish acronym) to levy capital gains from inheritances, bequests or donations of goods or rights in Ecuador that have been transferred to trusts.
The president of the Chamber of Commerce of Guayaquil, Pablo Arosemena, said that is better that the regime does not insist on sending the redistribution of wealth (or inheritance) bill, as he believes that this new rule is sent in the ‘worst’ time of economic development for the country.