1. When is the first appeal deadline following disagreement of the assessment made by the tax authorities?
Once the administrative procedure before the tax office is concluded, taxpayers have four months to file a lawsuit against that procedure from the date of receipt of the tax office's decision.
2. What is the appealing procedure?
- Administrative: Taxpayers may move for reconsideration against the official assessment issued by the tax office. Taxpayers have two months following the receipt of the official assessment. The administrative procedure is mandatory if the taxpayer wishes to take the discussion to the judicial level.
- Judicial: The appeal process takes place against the first instance judicial ruling and it must be completed no later than 10 days following service of the first instance ruling.
3. What is the average time for reaching a final national decision?
4 - 6 years
The average time for reaching a final national decision is up to four or six years.
4. How do the national tax dispute resolution proceedings interact with the international tax dispute resolution proceedings?
- Start: The judicial procedure begins when taxpayers file a lawsuit against the administrative procedure before the Colombian courts; specifically, against the official assessment issued by the tax office.
- Conduct of the proceedings: Generally, the first instance judicial controversy comprises (i) filing of the lawsuit, (ii) the tax office's response to the lawsuit, (iii) the initial hearing, (iv) the closing statements and (v) the first instance ruling. This may take between approximately two and three years. The second instance (which is highly likely, considering that both parties — the taxpayer and the tax office — may appeal) is made up of (i) the filing of the appeal (by the defeated party), (ii) closing statements and a (iii) final ruling. In addition, this may take approximately three years.
- Completion of proceedings: The judicial procedure concludes when the Administrative Supreme Court or the administrative tribunal (depending on the value of the lawsuit's motions) issues a final ruling.
- Other actions: The last tax reform allowed taxpayers and the tax office to terminate by mutual agreement administrative procedures and judicial procedures related to tax controversies. If both parties terminate said procedures, taxpayers obtain a reduction of the default interests and a reduction of the penalties imposed by the tax office in the official assessments.