DIAN Audit Lawyer Colombia
A notice from the DIAN, Colombia’s tax and customs authority, is often the first sign that a foreign-owned Colombian company is under review. A DIAN audit lawyer Colombia clients retain through Law Offices Of SRIS, P.C. helps the company respond to information requests, defend its tax positions and, where needed, challenge an assessment. The firm is a US law firm. Mr. Sris and the firm’s US-admitted attorneys advise the US parent, its officers and its US tax advisers on the cross-border consequences, while the firm’s Of Counsel attorneys admitted in Colombia handle the Colombian procedure and the filings before the DIAN.
The typical client is a US or other foreign group with a subsidiary, branch or registered investment in Colombia that has received a DIAN request, a proposed adjustment or a penalty resolution. Call Law Offices Of SRIS, P.C. at (888) 437-7747 to schedule a consultation.
What a DIAN Audit Covers
The DIAN reviews income tax, value-added tax, withholding, customs declarations and the information returns that Colombian companies must file. An audit usually begins with a request for documents or explanations. How the company answers that first request shapes everything that follows.
For a foreign-owned company, the review often concentrates on payments to related parties abroad, transfer pricing documentation, the deductibility of charges from the parent, the treatment of intercompany loans and the withholding applied to dividends, royalties and services. The DIAN may also examine whether the Colombian entity has the substance it claims, whether its accounting records support the figures reported, and whether its customs declarations match its commercial documents.
The audit can end with a closing letter and no change. It can also lead to a proposed adjustment, an official assessment with penalties and interest, or a referral for a separate penalty procedure. Each stage carries a period for response set by Colombian law, and the company loses rights when a period passes without a reply. The firm’s role is to make sure each response is complete, consistent with the group’s position elsewhere and supported by documents the DIAN will accept.
Stages of a DIAN Review and How the Firm Responds
Information requests
The Of Counsel attorneys admitted in Colombia review the request, identify what the DIAN is really testing and work with the company’s accountants to assemble a response. The US-admitted attorneys gather documents held by the parent, such as board minutes, intercompany agreements and US tax filings, and review them for consistency before anything is sent to Bogotá.
Proposed adjustment
When the DIAN issues a formal proposal to change the return, the company has one opportunity to answer in writing with legal argument and evidence. This is the stage where the record is built. Positions not raised here are harder to raise later, so the response is treated as the first brief in a possible dispute.
Official assessment and administrative appeal
If the DIAN confirms the adjustment, the company may file an administrative appeal before the authority itself. The Of Counsel attorneys prepare the appeal; the firm coordinates with the group’s tax advisers on whether to pay, settle or continue the challenge, and on how the Colombian outcome affects US reporting.
Judicial review
An adverse administrative decision can be challenged before Colombia’s administrative courts. The Of Counsel attorneys litigate the case. The firm keeps the US parent informed and coordinates any disclosure the group must make to its own regulators, lenders or auditors.
Settlement and conciliation
Colombian law periodically allows taxpayers to settle disputed assessments with reduced penalties through conciliation or mutual agreement procedures. The firm advises on whether a settlement is available and whether it makes commercial sense for the group as a whole.
How Mr. Sris and the Firm’s Of Counsel Attorneys Handle DIAN Matters
Law Offices Of SRIS, P.C. is a US law firm founded in 1997. Mr. Sris, its Owner and Founder, is admitted in Virginia, Maryland, the District of Columbia, New Jersey, and New York. He and the firm’s US-admitted attorneys advise the US parent on the matters that fall under US law: the effect of a Colombian adjustment on the group’s US tax returns, foreign tax credit questions handled with the group’s tax advisers, disclosures to US lenders or investors, document preservation, and privilege over communications with the Colombian team.
The Colombian procedure is handled by the firm’s Of Counsel attorneys admitted in Colombia. They are not admitted to practice in any US state, and their work is limited to Colombian law and to liaison with the firm’s US-licensed attorneys. They draft the responses, appear before the DIAN, file the administrative appeal and conduct any litigation before the Colombian courts. The firm does not prepare accounts or tax returns; it works alongside the company’s accountants and independent tax advisers in both countries so that the legal defense and the numbers agree.
Frequently Asked Questions
When should a company hire a DIAN audit lawyer in Colombia?
As soon as the first information request arrives, before any documents are sent. The early response defines the scope of the review and creates the record the DIAN will rely on later. Companies that answer informally, or let a local manager respond without legal review, often find that an incomplete or inconsistent answer becomes the basis for an adjustment. A lawyer can also make sure the company asks for extensions where Colombian law allows them, rather than missing a period.
Can the US parent be held liable for the Colombian subsidiary’s taxes?
In general the Colombian entity is the taxpayer, but the parent can be affected indirectly. Payments between the parent and the subsidiary are the usual focus of an audit, and an adjustment in Colombia may change how those payments are characterised for US purposes. Officers who signed Colombian returns may also face questions. The firm reviews these exposures with the group’s tax advisers rather than treating the audit as a purely local matter.
What documents does the DIAN usually request from a foreign-owned company?
Accounting records, intercompany agreements, transfer pricing files, invoices, bank statements and proof of payment for cross-border charges. The DIAN may also ask for evidence that services billed by the parent were actually rendered and benefited the Colombian entity. The firm coordinates that process so that the response is complete when filed.
Is it possible to negotiate with the DIAN?
Yes, within the settlement and conciliation mechanisms Colombian law makes available from time to time. Whether a settlement is open depends on the stage of the matter and on current legislation. The Of Counsel attorneys assess the options; the firm advises the parent on whether a settlement is preferable to continued litigation when the cost, the uncertainty and the effect on the group’s other filings are weighed together. No outcome can be promised.
How do DIAN penalties work?
Colombian law imposes penalties for inaccuracy, late filing and failure to provide information, plus interest on unpaid tax. Penalties may be reduced when the taxpayer corrects voluntarily or accepts an adjustment at an early stage. The firm does not quote figures on this page because the amounts depend on the facts and on legislation that changes. The Of Counsel attorneys explain the applicable penalty regime once they have reviewed the specific notice.
Does the firm also handle customs reviews by the DIAN?
Yes, the DIAN administers customs as well as internal taxes, and the firm advises on both. Customs reviews concentrate on valuation, tariff classification, origin and the use of special import regimes. Importers linked to US suppliers often face questions about related-party pricing. The Of Counsel attorneys handle the Colombian procedure; the firm coordinates with the US supplier on documents and consistent pricing positions.
What happens if the company disagrees with the final DIAN decision?
The decision can be challenged before Colombia’s administrative courts after the administrative appeal is exhausted. Litigation is conducted by the Of Counsel attorneys admitted in Colombia. The firm advises the US parent on reserves, disclosures and the interaction with US filings during the case. To discuss a DIAN notice or a pending assessment, call Law Offices Of SRIS, P.C. at (888) 437-7747.
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Law Offices Of SRIS, P.C. is a US law firm. Foreign attorneys collaborating with the firm are not admitted to the practice of law in any US state bar and their work is limited to matters of foreign law and to liaison roles with US-licensed attorneys.
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