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Works for Taxes and Regulatory Changes

Patrick Allemant's picture

As a result of the events occurred by reason of the serious cases of corruption of some foreign construction companies, it is important to analyse whether the package of rules issued by the Government can actually revive the economy considering that some of these rules are designed for the state entities and the private sector to coexist.

The task will be tough but we believe that the mechanism of Works for Taxes, still perfectible, can help to change radically the misconception that "working with the state is synonymous with slowness, complexity and corruption.

In fact, we believe that the Legislative Decree 1250 and its newly issued regulations are efficient and safe enough to ensure, once and for all, a proper synergy between the state and the private sector so that both can finally work together for the country and help closing the existing gaps regarding infrastructure and basic services.

In this sense, we believe that the main normative changes (simplification of the processes of budgetary authorizations, subscription of agreements and issuance of CIPRL[1]; elimination of the 15,000 UIT[2] limit; elimination of the interim application of the Law on State Contracting; expansion of funding sources for rural electrification, fisheries, urban planning, social protection, social development, transport, communications and justice; establishment of a liability procedure for the cases of noncompliance and obligation to include in the agreements an anti-corruption clause), make this mechanism an opportunity to implement true programs of social responsibility without incurring in tax contingencies. Moreover, these modifications constitute a way to ensure that the Income Tax paid by the taxpayers is assigned to the generation of real direct benefits perceptible for the population, the state and the private sector as well.

 

[1] Certificate of Regional and Local Public Investment

[2] UIT – Unidad Impositiva Tributaria – Taxation Unit

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Patrick Allemant's picture

Specialist in subjects of Corporate Law and Land Transport. With extensive knowledge in contractual and administrative matters, trained with postgraduate courses in international trade negotiations and contracting.

He was Director General of Land Circulation of the Ministry of Transport and Communications for a period of three and a half years. Having actively participated in the solution of conflicts of national interest. During his administration he was in charge of the design of policies of transport and land transit and of the elaboration of norms of regulation of the service of public transport, of the interprovincial service of passengers and of transport of goods.

He was president of the Committee of Authorities of Transit and Transit Terrestrial of the Andean Community, representative of the MTC before the National Commission for the Promotion of the Use of Natural Gas and titular member of the Supervisory Council of the System of Control of Natural Gas Vehicle Charge-CNG in charge of the promotion, diffusion and development of the markets Of industrial, automotive and residential natural gas.