Credicorp Ltd. Takes Stand in Tax Dispute to Uphold Justice
Credicorp Ltd. Moves Forward with Legal Action Against SUNAT
Credicorp Ltd. (“Credicorp” or “the Company”) (NYSE: BAP), a premier financial services holding company in Peru with operations in various countries, has officially initiated legal action against the Peruvian Tax Administration, known as SUNAT. This legal step is taken to contest allegations that the Company has disregarded existing laws and decisions by SUNAT’s Review Committee. This response reflects a significant concern for the integrity of the legal frameworks that protect businesses operating in the country.
The Context of the Legal Dispute
The legal dispute pertains to transactions where Grupo Crédito S.A., a subsidiary of Credicorp, acquired shares of Banco de Crédito del Perú (BCP) from Credicorp itself during the years 2018 and 2019. Under Peruvian legislation at that time, such transactions were exempt from income tax if they involved less than 10% of the total shares in a 12-month window. These provisions were put in place to encourage economic activity and investment within the country.
Compliance and Transparency in Transactions
All activities related to these share transactions were conducted with the utmost transparency and rigor. They were communicated to the Superintendencia del Mercado de Valores (SMV), approved by the Superintendencia de Banca, Seguros y AFP (SBS), and recorded appropriately with Registro Central de Valores y Liquidaciones (CAVALI). The compliance with legal and regulatory standards underscores Credicorp’s commitment to ethical business practices.
Breaking Down SUNAT's Allegations
Despite prior confirmations from SUNAT’s own Review Committee validating the legitimacy of these transactions, SUNAT has taken a surprising turn by reopening the case and now demands over S/. 1.5 billion in unpaid income tax along with accrued interest. This unexpected challenge raises questions about the reliability of the legal norms that businesses depend on, leading Credicorp to view this development as a serious breach of legal predictability.
Impact on Corporate Operations
This situation has significant ramifications not just for Credicorp, but for all entities operating in the Peruvian market. A stable legal environment is crucial for encouraging investment and maintaining business operations. By challenging SUNAT’s recent decisions, Credicorp aims to safeguard the legal rights of corporations operating in Peru, ensuring that established laws are respected and upheld.
Future Steps and Commitment to Compliance
As this legal battle unfolds, Credicorp is thoroughly evaluating the situation and will utilize all necessary legal and administrative avenues to defend its position. Grupo Crédito S.A., the involved subsidiary, remains dedicated to adhering to all regulations and maintaining compliance with tax obligations, while also protecting the interests of its workforce, clientele, and shareholders.
About Credicorp Ltd.
Credicorp Ltd. is renowned as the leading financial services holding company in Peru, with a presence extending across Chile, Colombia, Bolivia, and Panama. The Company operates through a diversified portfolio across four primary sectors: Universal Banking through Banco de Crédito del Peru (BCP) and Banco de Crédito de Bolivia; Microfinance via Mibanco in Peru and Colombia; Insurance & Pension Funds through Grupo Pacifico and Prima AFP; and Investment Management & Advisory activities via Credicorp Capital and Wealth Management services at BCP and ASB Bank Corp.
Frequently Asked Questions
What is the reason for Credicorp's legal action?
Credicorp is contesting allegations from SUNAT regarding tax compliance related to past transactions involving the purchase of BCP shares.
How does this dispute affect businesses in Peru?
This case raises concerns about the reliability of the legal framework essential for corporate operations and investment in Peru.
What was the nature of the transactions in question?
The transactions involved Grupo Crédito purchasing shares of BCP from Credicorp, which were believed to be exempt from income tax under previous legislation.
What does Credicorp aim to achieve with this legal action?
Credicorp seeks to uphold legal certainty and defend its rights, ensuring that established laws are respected.
How can stakeholders contact Credicorp?
Interested parties can reach out to Credicorp’s Investor Relations team via the email address: investorrelations@credicorpperu.com.
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