Chilean SII defended casino taxation before the Senate
The director of Chile's Internal Revenue Service (SII), Jorge Trujillo, appeared before the Senate's Economy Committee and defended the agency's decision to enable a tax collection mechanism for foreign online betting platforms. The intervention sought to dispel criticisms linking the measure to a potential validation of an activity that the Supreme Court has already deemed illegal.
The SII's Stance and the Scope of Resolution 69
Trujillo rejected the notion that the registration system enabled by Exempt Resolution Number 69 promotes or validates an illegal activity. He further maintained that the mechanism does not imply regulation of online gambling nor authorization to operate in the country. The official explained that the demand for VAT from online betting platforms does not seek to regularize their sectoral situation or replace the powers of the bodies that must define the legal status of the activity.
The Senate's Doubts and the Shadow of the Supreme Court
The committee's president, Gastón Saavedra, along with senators Diego Ibáñez and Ricardo Celis, recalled the Supreme Court's ruling that declared online gambling illegal in Chile, and the parallel processing of a bill to regulate the sector. The legislators questioned the public signal sent by the SII in enabling a payment system for unauthorized operators, in a debate that touches the heart of Chilean fiscal institutionalism.
The Tax Doctrine Behind the Decision
Trujillo argued that if the activity should not have taken place, that issue must be addressed by the competent bodies. But if, in fact, operations occurred that constitute a taxable event under current tax law, it is up to the SII to demand compliance with the associated tax obligations. The doctrine aims to prevent regulatory non-compliance from leading to an unjustified tax advantage compared to other economic agents.
Chile Between Ambiguity and Regulatory Waiting
The exchange exposes the paradox of the Chilean market: foreign online operators operate openly in the country without a specific regulatory framework, while Polla Chilena and physical casinos face demands typical of a highly supervised sector. The discussion comes simultaneously with the progress of the online gambling bill, which the Executive declared to be of utmost urgency. For the rest of Latin America, the Chilean case serves as a laboratory for tensions between tax administration and sectoral regulation in a context where digital transformation moves faster than regulations.
Tags: Chile, SII Chile, Online gambling taxes, Chile betting regulation, iGaming Latin America, pending-review