SRI denounces that the national court’s decision affects the State

Carlos Marx Carrasco

Carlos Marx Carrasco, director of the Internal Revenue service (SRI), announced yesterday at a press conference that a ruling issued by the national court of Cassation could be the cause of a millionaire  loss to the Treasury ($ 252,3 million), within the trial that the tax entity follows against the company’s pipeline for heavy crude (OCP).

Last July 18 the Court ruled against the SRI, by not accepting a document issued presumably for  an undercapitalization and simulation of credit, which had generated them lower income, and therefore, lower taxes.

The ruling, which refers only to the year of 2003, in which the SRI considered that they have didn’t pay almost $17.7 million, and  the Court  is reviewing debts of $252 million  up to 2009.

In the judgement, the judges point out  that in the contract signed between the Ecuadorian State and OCP, for the construction of the pipeline, it is stipulated that the financing is in charge of OCP Ecuador and the credit, which the SRI considers simulated, is subjected to the contractual clause.

The director of the SRI also indicated that they will analyze the possibility of starting criminal proceedings against judges for the alleged crime of malfeasance.