Decision 578, avoidance and evasion

Abstract

Decision 578 of the Andean Community of Nations (CAN by its acronym in Spanish) includes a framework against international double taxation, granting the power to tax income to the country where its source is located. Under this treaty, the State where the taxpayer resides considers the income as exempt, except in some cases. This benefit could imply a risk of tax avoidance or tax fraud from the taxpayers.