"A Tax Audit is the process whereby the SII verifies a taxpayer’s compliance with tax obligations.
The SII notifies the taxpayer of its decision to carry out an audit in writing by issuing a Notice of Audit (Notificación) and requesting the presentation of relevant documents. If the taxpayer fails to respond to this Notice, it is considered as an obstruction of the SII’s inspection authority. When this occurs, the SII issues a second Notice of Audit, and if the taxpayer still fails to respond, the SII can ask the court to serve a writ on the taxpayer demanding that they submit to the audit. Failure to respond to the writ can result in up to 15 days imprisonment for the taxpayer.
After the tax documentation has been checked, one of two situations will arise:
- 1. The SII will determine that the taxpayer has correctly complied with his tax obligations; or
- 2. The SII will determine that the taxpayer has not correctly complied with his tax obligations. A taxpayer who accepts this finding may voluntarily present a corrected return (Rectificatoria). A taxpayer who does not voluntarily rectify his return will be served with a Legal Notice (Citación) in which the SII will request that the taxpayer provide additional information to endorse his position. The taxpayer must respond within one month, though this period can be extended for another month.
If the taxpayer provides additional information when served with the Legal Notice (Citación), the SII will respond with one of three different answers:
a. Sufficient: the tax matter has been solved;
b. Partial: the tax matter has been solved partially; or
c. Insufficient: the tax matter has not been solved
If a taxpayer fails to respond to the Legal Notice, or if the response is considered Partial or Insufficient, the SII will issue a Determination of Tax Due (Liquidación) that calculates the outstanding taxes and that notifies the taxpayer in writing of this calculation. If the taxpayer does not agree with the Determination of Tax Due, he may request that the SII reevaluate the Determination of Tax Due and, additionally, can appeal to the SII Tax Tribunal or present his complaint to a higher court. However, if a determination is reached that the taxpayer must pay the taxes due, the SII issues a Payment Order (Orden de Giro) whereby the amount of outstanding taxes, interest and fines is determined." fuente,sii.cl.