Top 10 Tax Headlines from South America Like many other developed countries, from time to time the Brazilian government refines and adjusts the legal definition of tax haven jurisdiction ("paraíso fiscal"), initially established by Law No. 9.430, of December 27, 1996, which introduced the transfer pricing regulations in Brazil. Since the execution of the income tax treaty with Spain that entered into force on October 2008, the first of its kind in the Country, Colombia has executed similar treaties, not yet in force, with Chile on April 2007, Switzerland on October 2007, Canada on November 2008, and with Mexico on August 2009. Through the last major tax reform, contained in Law 1111 dated December 27, 2006 Congress decreased income tax rate to 33% as from 2008. Congress Act 1328-2009, has authorized settlements of local taxes controversies, e.g., industry and commerce tax, property tax, registration tax, including any disputed penalties and interests. Through law 1258 of December 2008 Congress made one of the most substantial reforms in colombian commercial law. It created a new and innovative legal figure known as the Simplified Corporation. After some years of only having the Andean Community (Peru, Bolivia, and Ecuador) treaty, Colombia keeps expanding the network of bilateral agreements intended to avoid double taxation. Colombia had two double taxation treaties, the first one with Spain, already approved by Congress through Act 1082 dated July 31, 2006, but pending favorable decision by the Constitutional Court about its constitutionality, and a second one with Chile, signed on April 19, 2007 and already presented to the Congress for its approval. Ratification notes of DTT with Spain were exchanged by both governments last 23 of July; thus it will enter into force on October 23, 2008 and will be applicable in 2009; DTTs with Chile and Switzerland are being discussed at Congress. The Brazilian Superior Court of Justice on September 8 publishedFinal Decision 360, which states that Brazilian taxpayers thatspontaneously disclose in tax forms unpaid tax debts that aresubject to assessment by homologation are ineligible for voluntarydisclosure benefits. | 
