Tax Unit

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PBP´s Tax Unit merges legal practice with accounting and finance to provide comprehensive advisory services, offering effective and applicable solutions which take into account consequences in other areas such as employment, corporate and regulatory matters.

Our team is composed of lawyers specializing in tax law who have deep experience in structuring and an excellent track record and results in administrative claims and tax litigations, and by financial experts in accounting, finance, tax planning, International Financial Reporting Standards (IFRS) and transfer pricing, with excellent experience at audit firms and international consultants.

This multidisciplinary focus enables us to:

  • Optimise taxes and structures, in compliance with the law and minimise risks.
  • Represent and defend our clients in tax claims or litigations with solid legal and accounting arguments.

A PBP is an independent firm which is not affiliated to any financial or audit institution, our ability to provide comprehensive services in tax matters is not restricted by any local or foreign regulation.*

Our portfolio of service includes:

  • Permanent advisory services and planning regarding state and municipal taxes.
  • Tax planning and implementation of tax-efficient structures.
  • Advisory services regarding the interpretation and application of international double taxation treaties in transactions involving mergers, acquisitions and corporate restructuring.
  • Support with tax structuring when starting businesses.
  • Analysis and determination of tax costs for the transfer of shares and companies.
  • Accounting and financial advisory services in the application of International Financial Reporting Standards.

  • Review of income tax returns, value added tax, withholding at source and others.
  • Comprehensive evaluation of tax risks – tax audit.
  • Periodic review of performance of tax obligations (annual, monthly and/or biannually).

  • Preparation of accounting – tax reconciliation.
  • Preparation of tax returns and tax annexes.
  • Preparation of net worth statement.
  • Preparation of tax returns for foreign staff and high ranking executives.
  • Registration of external credits at the Central Bank of Ecuador.
  • Monthly review of financial statements prior to submission to the Internal Revenue Service.

  • Assistance with the preparation of responses to tax authorities regarding requests for information or tax determinations. Representation in litigations through administrative and judicial channels.

  • Preparation and processing of tax refunds.
  • Assistance with the preparation and filing of investment contracts.

  • Preparation and strategic review of income tax returns and evidentiary documentation.
  • Tax advisory services regarding the interpretation and application of the Transfer Pricing system.
  • Analysis of the Comprehensive Transfer Pricing Report and Annexes.

  • Due Diligence on tax and legal compliance
  • Due Diligence on tax and financial compliance
  • Financial and Accounting Due Diligence
  • Due Diligence on tax and employment compliance

  • Analysis of the tax obligations of individuals.
  • Advisory services on tax planning relating to inheritance tax, legacies and gifts.
  • Advisory services on the structuring, modification and elimination of corporate structures in Ecuador and abroad.
  • Detection of offshore tax risks with the support of foreign firms.
  • Assistance and management of net worth statements.
  • Strategies for the succession of family companies.
  • Assistance and drafting of family protocols.

  • Training of executives and employees, adapted to the particular risk profile of the company.
  • Open courses on tax, legal and financial matters.

  • Analysis of matters related to customs tax and the tax implications of foreign trade.

What they say about us

Chambers and Legal 500:

“Esteemed tax department covering all areas of tax law including tax structuring, due diligence, litigation and administrative matters. Team made up of both lawyers and financial experts. Areas of strength straddle structuring, inspections, litigation and due diligence. Regularly advises notable international clients across a broad range of industries, including insurance, oil and gas, aviation and telecommunications.”

The Legal 500

“With one of the biggest tax departments in Ecuador, Pérez Bustamante & Ponce advises clients across all industries on tax planning, tax compliance obligations and tax due diligence; recent years, however, have seen it particularly increase its activity in tax litigation. Notable 2014-highlights include assisting UPS obtain reimbursements from the Ecuadorian tax authority (SRI) related to VAT paid for fuel purchases, and advising Noble Americas on the tax aspects related to its $1bn loan to national oil company Petroecuador.”

Latin Lawyer 250

Pérez Bustamante & Ponce’s knowledgeable tax team advises local and international companies and individuals on compliance with tax regulations, tax planning, due diligence, and assistance with inspections carried out by tax authorities. The highly capable Juan Gabriel Reyes was promoted to partner in January 2013 and leads the tax department with María Rosa Guerra.”

Resolution No. 7 of the Superintendency of Companies, published in Official Register No. 564, dated 26 April 2002

SECTION IV
PROHIBITIONS AND PENALTIES

Art. 9. Individuals or legal entities qualified to perform external audits are prohibited from:
a) Form part of the administration and tax bodies of the audited company;
b) Be partners or shareholders in the audited company;
c) Delegate the exercise of his position;
d) Represent shareholders or partners at the general meetings of the audited company;
e) Perform the duties of the audited company’s accountants;
f) Perform and support, whether himself or through another individual, the duties of legal advisor of the companies in general, even if they are their external auditors. This may take place in exceptional cases as set forth in Article 99 of the Internal Tax Regime Law and its regulations; and
g) Provide advisory services by himself or through another individual.

 

SARBANES-OXLEY ACT OF 2002

TITLE II—AUDITOR INDEPENDENCE

SEC. 201. SERVICES OUTSIDE THE SCOPE OF PRACTICE OF AUDITORS.

(a) PROHIBITED ACTIVITIES.—Section 10A of the Securities Exchange Act of 1934 (15 U.S.C. 78j–1) is amended by adding at the end the following:

‘‘(g) PROHIBITED ACTIVITIES.—Except as provided in subsection (h), it shall be unlawful for a registered public accounting firm (and any associated person of that firm, to the extent determined appropriate by the Commission) that performs for any issuer any audit required by this title or the rules of the Commission under this title or, beginning 180 days after the date of commencement of the operations of the Public Company Accounting Oversight Board established under section 101 of the Sarbanes-Oxley Act of 2002 (in this section referred to as the ‘Board’), the rules of the Board, to provide to that issuer, contemporaneously with the audit, any non-audit service, including—

‘‘(1) bookkeeping or other services related to the accounting records or financial statements of the audit client;

‘‘(2) financial information systems design and implementation;

‘‘(3) appraisal or valuation services, fairness opinions, or contribution-in-kind reports;

‘‘(4) actuarial services;

‘‘(5) internal audit outsourcing services;

‘‘(6) management functions or human resources;

‘‘(7) broker or dealer, investment adviser, or investment banking services;

‘‘(8) legal services and expert services unrelated to the audit; and

‘‘(9) any other service that the Board determines, by regulation, is impermissible.