The Constitutional Court’s Sentence C-290 of 2026, issued on 21 September 2026, declared constitutional the phrase “net equity” (patrimonio líquido) in Article 286 of Law 1819 of 2016 as the basis for calculating penalties applicable to non-income-tax-paying entities (such as non-profits, public entities, and certain trusts) that are required to file the annual income and assets declaration. The Court reasoned that net equity adequately reflects the economic capacity of these entities and ensures proportionality in sanctions for late filing, inaccuracies, or omission of assets.
Key Takeaways
- Penalty Base Confirmed: Penalties for late filing, correction, or inaccuracy in the income and assets declaration are calculated as a percentage of the entity’s net equity, not gross assets or income.
- Scope of Entities: Applies to entities exempt from income tax but obligated to file the declaration (Form 110), including foundations, associations, employee funds, and public law entities.
- Compliance Imperative: Entities must ensure accurate net equity determination and timely filing to avoid disproportionate penalties, which can reach significant amounts for asset-rich organizations.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement