| Ecuador: Integrity Scorecard Report > Sub-Category: Taxes and Customs | ||
| Indicators | Score | |
| 58 | In law, is there a national tax collection agency? | 100 |
| 59 | Is the tax collection agency effective? | 100 |
| 60 | In practice, are tax laws enforced uniformly and without discrimination? | 50 |
| 61 | In law, is there a national customs and excise agency? | 100 |
| 62 | Is the customs and excise agency effective? | 75 |
| 63 | In practice, are customs and excise laws enforced uniformly and without discrimination? | 25 |
Indicator and sub-Indicator Details
| 58 | In law, is there a national tax collection agency? | |||||||
| 58: In law, is there a national tax collection agency? | ||||||||
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Comments: The State collects taxes through the Internal Revenue Service (SRI--Servicio de Rentas Internas), created by law to collect the resources originating from different taxes (Impuesto a la Renta, Impuestos Indirectos, Impuesto a Consumos Especiales, etc). SRI is responsible for executing the tax policies, therefore is the responsible for collecting taxes. References: Ley 41, Registro Oficial 206, 1997/12/02 Ley de Creación del Servicio de Rentas Internas. Article 2 Ley 41, Registro Oficial 206, 1997/12/02 Ley de Creación del Servicio de Rentas Internas. Article 3 Ley Régimen Tributario Interno.
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| 59 | Is the tax collection agency effective? | |||||||
| 59a: In practice, the tax collection agency has a professional, full-time staff. | ||||||||
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Comments: The Internal Revenue Service (SRI--Servicio de Rentas Internas) has a full-time staff, who can take charge of the collection of taxes. In the case that these officials verify that the businesses or companies are not obeying the law, they are authorized to close the businesses or companies.
References: Servicios de Rentas Internas (SRI) www.sri.gov.ec
Peer Review Comments: The degree of professionalism is questionable.
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| 59b: In practice, the tax agency receives regular funding. | ||||||||
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Comments: The Internal Revenue Service (SRI--Servicio de Rentas Internas) receives funds of the General Budget of the State, channeled through the Ministry of Economy and Finances. References: Servicios de Rentas Internas (SRI) www.sri.gov.ec
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| 60 | In practice, are tax laws enforced uniformly and without discrimination? | |||||||
| 60: In practice, are tax laws enforced uniformly and without discrimination? | ||||||||
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Comments: The collection of taxes in Ecuador, has a bigger percentage participation in the tributary revenues of the Non Financial Public sector (SPNF). The Tax of Added Value (IVA) represents 57 percent, the property tax contributes 27 percent and the special consumptions tax, 10 percent. The administration of the Internal Revenue Service (SRI--Servicio de Rentas Internas) is classified as good, because it was able to increase the collection of all the taxes through the institutional reformation it carried out. The tributary revenues starting from the 2001 were bigger than the oil revenues. There are some problems, however. For example, there are articles about how when companies or people pay the Tax of Added Value, in some cases the SRI may refund what was paid. Others examples, are when the SRI collects some taxes, those collections are assigned to some institutions, which are considered vulnerable sectors, but those collections do not benefit all in the vulnerable sector. Therefore, there is discrimination in the way vulnerable sectors are assigned. References: Ecuador Notas de Políticas. Una Propuesta para el Despegue Económico y Social por Banco Mundial.
Peer Review Comments: One of the most complicated issues that Ecuador faces is tax evasion by the private sector. Recent reports show that the construction industry, for example, evades over 60 percent of its taxes. A source of information is the national tax agency (SRI, Servicio de Rentas Internas).
Peer Review Comments: There are many allegations of favoritism toward the biggest companies and richest persons.
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| 61 | In law, is there a national customs and excise agency? | |||||||
| 61: In law, is there a national customs and excise agency? | ||||||||
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Comments: Through the Law of Customs (Ley Orgánica de Aduanas) the Ecuadorian Customs Corporation (CAE--Corporación Aduanera Ecuatorina) is the agency which is responsible for administering the national customs system of the Ecuador and to recollect the tributes by imports or exports. References: La Ley Orgánica de Aduanas.
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| 62 | Is the customs and excise agency effective? | |||||||
| 62a: In practice, the customs and excise agency has a professional, full-time staff. | ||||||||
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Comments: The Ecuadorian Customs Corporation (CAE--Corporación Aduanera Ecuatorina) possesses a full-time staff that assists eight hours a day. However, their staff is considered not very qualified. References: Corporación Ecuatoriana de Aduanas (CAE) www.cae.gov.ec Ecuador Notas de Políticas. Una Propuesta para el Despegue Económico y Social por Banco Mundial.
Peer Review Comments: The staff is full time but not professional.
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| 62b: In practice, the customs and excise agency receives regular funding. | ||||||||
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Comments: The Ecuadorian Customs Corporation (CAE--Corporación Aduanera Ecuatorina) receives funds from the General Budget of the State, channeled through the Ministry of Economy and Finances. References: Corporación Ecuatoriana de Aduanas (CAE) www.cae.gov.ec
Peer Review Comments: They get all that they can steal!
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| 63 | In practice, are customs and excise laws enforced uniformly and without discrimination? | |||||||
| 63: In practice, are customs and excise laws enforced uniformly and without discrimination? | ||||||||
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Comments: The Ecuadorian Customs Corporation (CAE--Corporación Aduanera Ecuatorina) is not able to fulfill its goals. The CAE has not had the success of the Internal Revenue Service (SRI--Servicio de Rentas Internas).
References: Ecuador Notas de Políticas. Una Propuesta para el Despegue Económico y Social por Banco Mundial.
Peer Review Comments: Ecuador's customs laws have historically been poorly enforced, with ample opportunity for bribery and corruption.
Peer Review Comments: This agency has been run by civilians, the military, and even a priest. In all cases, it has been blatantly corrupt.
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