Analysis of Tax Avoidance and Evasion Practices Employed by Taxpayers in Colombia through The Use of Electronic Documents During The Taxable Year 2023

Abstract

Tax evasion and tax avoidance are a problem that has worsened in Colombia, with taxpayers using all kinds of maneuvers to avoid paying their taxes or to reduce the amount to be paid. As a direct consequence of the above, the State's collection capacity is reduced, thus limiting public investment. In accordance with the above, the general objective was to analyze the tax evasion and avoidance practices employed by taxpayers in Colombia through the use of electronic documents during the taxable year 2023, in order to provide a broad understanding of the phenomenon and suggest recommendations for its prevention and control. Methodologically, descriptive research, the qualitative approach and the analysis-synthesis method were used. As a result, it was established that among the main practices are tax under-declarations, reduction of the taxable base, the use of front companies, tax havens and international omissions; however, the use of electronic invoicing has contributed to the reduction of the levels of evasion and avoidance, as it contributes to the transparency of transactions.