The High Cost of Compliance Errors in Latin America: Corporate Fines and Penalties by Country

Steve Sprague
November 2, 2015

This blog was last updated on November 2, 2015

As global enterprises continue to pursue market opportunities in Latin America, they are experiencing operational risks unseen in other markets due to the constantly changing dynamics of business-to-government regulations in this region. Failure to comply with these regulations can impact critical business functions, not only resulting in millions of dollars in fines and penalties, but also shipping delays and operational shut-downs. In the most complex regulatory environments, such as Brazil, these mandates even affect sales, procurement and HR functions.

Though the end goal of these regulations – increased tax revenues – is the same, each country in Latin America varies significantly in terms of specific requirements and risks of compliance errors. With strict government regulations that can change almost overnight, companies are struggling to keep up with how these requirements differ by country. We have outlined the fines and penalties to help businesses understand the need for a proactive approach to compliance in Latin America.

These fines and penalties can quickly add up. For example, a company that’s missing 10,000 invoices from its electronic archives in Brazil (which is not uncommon) could be facing fines of more than $1 million USD. Download our summary of fines and penalties for each mandated country within Latin America.  

Click here to listen to the webinar replay on 2016 Tax Penalties and Latest Mandates in Latin America, to learn about the latest mandates plus fines and penalties per mandated country.

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Author

Steve Sprague

Como director comercial, Steve Sprague dirige la estrategia corporativa, las iniciativas de penetración de mercado y de field enablement para el negocio del impuesto sobre el valor añadido global (GVAT) de la empresa. El estilo de liderazgo de Steve se basa en su convicción de que, para que las organizaciones tengan éxito, deben comprometerse e invertir en los tres pilares estratégicos de la empresa: las personas, las prácticas y los productos.
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