The remittance of interest has generated $ 84 million in revenue to the State

Ecuadornews:

Until November 18, the 99% reduction in the IESS applies. Around 120,000 taxpayers took part in the processes in the different public institutions, the majority belonging to the MSME segment. 44 days passed since the Law on Productive Development came into force and up to now $ 84 million was collected through the remittance of interest, fines and surcharges in the different public institutions.

The preliminary results were presented by the Minister of Economy and Finance, Richard Martinez, who reported that around 120,000 taxpayers took part in the processes. 99% of the beneficiaries are micro, small and medium taxpayers, said Martinez on Wednesday October 3 in an interview in Ecuavisa.

Through these processes, the State expects to obtain $ 774 million by 2020. The official mentioned that the bulk of the collection will be generated in December of this year, when the 90-day deadline established for the large companies to access will expire.

According to the law, the remittance parameters apply for debts due until April 2, 2018 with the Internal Revenue Service (SRI), the National Customs Service of Ecuador (Senae), the National Transit Agency (ANT), the Ecuadorian Institute of Social Security (IESS), public companies and decentralized autonomous governments (GAD).

To benefit from the measure, the taxpayer must pay all the capital, since the cancellation is exclusively on interest, fines and surcharges. The highest percentage of what has been collected to date comes from the SRI with $ 52.24 million and another $ 14.5 million from the IESS.

The process is applied in two groups: in the first group, there are the large taxpayers, who in the last three fiscal years have registered revenues of more than $ 5 million and must pay the total debt within 90 days from the publication of the law. The second, which includes micro, small and medium-sized companies, may pay their debt or request a financing plan that will include monthly payments of up to two years. Martinez stressed that “the benefit that has been received until today is concentrated in the people and taxpayers of lower income”.

 Christian Cisneros, executive director of the National Chamber of Small and Medium Enterprises (Canape), agreed that the smallest, but also the big businesses are favored. In his opinion, it has little impact on small or medium industries. “The referral has generated expectations, but in our cases is still reduced,” he noted.

The drawback, added Cisneros, is that small entrepreneurs face liquidity problems due to low consumption, deflation and a decrease in activity, which complicates the payment of capital and prevents access to remission. He recalled that between 2014 and 2016 some companies that were suppliers of the State began to have delays with the SRI and the IESS, because the Government stopped paying them, “which caused the debt to accumulate.” Patricio Alarcón, president of the Ecuadorian Business Committee (CEE), added that the main factor of noncompliance is the lack of liquidity in the business, a lot of money in accounts receivable and accumulation of inventories.

Jorge Calderón, director of the Argos Technological Institute, said that the referral seeks to resolve in the short term the lack of liquid resources in the State to comply with the payment of salaries, payments to suppliers, among others. The norm stipulates that the person who benefits leaves aside all those trials, litigation or problems that he has with institutions, companies or the same State.

The access will be for this time and cannot be part of another similar process for the lapse of 10 years. The chairman of the IESS board of directors, Manolo Rodas, in an interview with EcuadorTV, stressed that as the payment of salaries by the employers progresses, the members of the Social Security can qualify their benefits. He recalled that until November 18 can benefit from the 99% reduction of interest. (I)

Source: https://www.eltelegrafo.com.ec/noticias/economia/4/remision-intereses-ingresos-estado-ecuador