Tax Regimes in Latin America and Effective Strategies to Mitigate Tax Evasion

Abstract

This research addressed the analysis of tax controls in Latin America, exploring how they are implemented and their impact on tax collection. The objective was to evaluate the different tax systems in the region and determine the effectiveness of these controls in combating tax evasion. A methodology based on secondary sources, including news reports, academic articles, previous studies and data from tax entities, was used to gather essential information to discern the different regimes and analyze the 2022 data. The results showed considerable similarities in tax controls across countries, from the types of systems implemented to taxpayer rights, evidencing an interconnectedness in the region's tax systems. Nevertheless, a persistent tax gap was identified, exacerbated by the growth of the informal sector. Among the key findings, it was highlighted that, although all countries have tax structures, each one administers them differently. In addition, it was concluded that fiscal controls are crucial to improve tax collection and thus state revenues.