Failure to comply with withholding agent obligations is one of the most serious tax risks for businesses and organizations in Colombia: not remitting collected taxes, such as withholding tax or VAT, can trigger criminal proceedings, financial penalties, and damage corporate reputation.
What does the crime of omission by a withholding agent consist of?
The withholding agent is responsible for deducting and remitting certain taxes on behalf of the DIAN (Colombian Tax Authority). Failure to comply occurs when these withheld amounts are not delivered within the legal timeframe, constituting a crime under Article 402 of the Colombian Penal Code.
- Prison sentences: They range from 48 to 108 months.
- Fines: These can be up to double the amount not deposited.
- Administrative and criminal consequences: From investigations, requests and seizures to legal proceedings that compromise assets and operations.
Methods to avoid penalties
Prevention begins with strict compliance with tax obligations and periodic review of procedures within the company.
- Specialized legal advice: An expert team in tax and corporate criminal law can make the difference between a multimillion-dollar penalty and a technical solution.
- Evaluate the situation and propose normalization plans, payment agreements and defense before the DIAN.
- Representation in administrative and judicial processes to guarantee a comprehensive defense.
- Implementation of compliance strategies, internal tax audits, and training of the finance team to prevent recurrence.
Protect the stability of your business
Don’t underestimate the impact of tax evasion: timely advice is key to protecting your assets, reputation, and business continuity in the new Colombian tax environment. At Paez Martin Abogados, our expert team supports business owners from risk prevention to legal defense in criminal and administrative proceedings.
Seek legal advice before a tax difficulty becomes a legal problem, and ensure the solvency and peace of mind of your company.
