Chile vs Monsanto Chile S.A, April 2020, Tribunal Constitucional de Chile, Case N° Rol 7864-19-INA

« | »

Monsanto Chile, Since 2018 a subsidiary in the Bayer group, had been issued a tax assessment related to FY 2009 and 2010 resulting in additional taxes of approximately $800.000.000. and penal interest of 1,5% per month in an amount of $2.216.759.197.

Monsanto filed an appeal in regards to the penal interest of $2.216.759.197. In the appeal the company argued, that the interest should be inapplicable since the case has been delayed by Courts due to both lack of activities and COVID 19.

Decision of the Court

In a split decision the Constitutional Court ruled in favor of Monsanto and declared the penal interest inapplicable.

For all the reasons stated in this ruling, this Court concludes that the application of the penal interest provided for in the third paragraph of Article 53 of the Tax Code, in this specific case, contravenes the constitutional guarantees contained in numbers 2 and 3, paragraph 6, of Article 19 of the Constitution. For this reason, it shall be declared inapplicable due to unconstitutionality.

Click here for English translation

 

TP Chile Bayer

Related Guidelines

Leave a Reply

Your email address will not be published. Required fields are marked *