TAX NEWSLETTER - TAX LOTTERY
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Official Register No. 346 – May 27, 2008

Resolution No. NAC-DGER2008-0570

The last paragraph of Article 103 of the Internal Tax Regime Law allows the Director General of the Internal Revenue Service (“SRI”) to implement lotteries or similar systems for purposes of encouraging final consumers to request invoices for the goods purchased by them or for the services provided to them. Therefore, the SRI has created the “TAX LOTTERY” aiming to promote a tax culture in Ecuador through incentives for the final consumers of goods and services.  Below are listed the main features of this system:

  • The lottery will take place on the dates set by a committee of the SRI established for that purpose.
  • Sales vouchers enabling to participate will be those issued during the period determined by the committee in the invitation.
  • All individuals that collect the number of eligible vouchers may participate in the lottery, with the exception of SRI officers and employees, their spouses and relatives up to the fourth degree of consanguinity and second degree of kinship.
  • Original invoices, sales vouchers and cash register tickets validly issued during the lottery period are eligible for the lottery if they contain the requirements set forth in the Regulations for Sales and Withholding Vouchers.
  • The committee will issue an invitation to be published in at least two newspapers of nationwide circulation and in the SRI web page.
  • The invitation will specify the period for the lottery, locations where ballot boxes will be placed, prizes, date and location where the lottery will take place, and deadline for participation.
  • Participants will deposit an envelope with their personal data, complete name and identity card number and originals of at least five eligible sales vouchers in ballot boxes distributed by the SRI throughout the nation.
  • There is no limit on the number of participations per person, and it is not necessary that sales vouchers be issued in the name of the participant.  However, if sales vouchers are to be used to support costs, expenses or tax credits, they cannot be used for the lottery because the tax administration will use those documents and, therefore, will not return them.
  • The lottery will be public.
  • The envelopes deposited in the SRI ballot boxes will be taken to the lottery place and one envelope will be drawn at random for each prize.
  • Envelopes that (a) do not include the established number of vouchers; (b) include sales vouchers that do not meet the requirements of this resolution or if reported to the SRI by any taxpayer to support costs, expenses or tax credits will be disqualified.
  • The tax administration will present 10 prizes at each lottery.
  • The committee will determine the amount of the prizes to be awarded.
  • A document will be drawn up by a notary and will be published with the names of the winners in at least two newspapers of nationwide circulation and in the SRI web page.
  • Within no more than 15 days, the SRI will deliver the corresponding prizes.  The right to claim the prizes will last at least during 6 months after publication of the winner’s name in a newspaper.