DNIT puts bank accounts under scrutiny as expert warns of habits taxpayers should avoid

A company sale paid into an owner’s personal bank account may look like a convenient shortcut, but tax expert Nora Ruoti Cosp says it can become a serious accounting problem under Paraguay’s increasingly digital tax controls.

The National Directorate of Tax Revenues, known as DNIT, recently signed an agreement with the Paraguayan Banking Association, or Asoban, to improve the traceability of transactions and accelerate financial-data exchanges. Ruoti said the agreement does not give tax authorities extraordinary powers, because existing tax law already allowed them to request financial information through regulated procedures. Its practical effect, she said, will be faster coordination and responses between private banks and the tax administration.

With more digital systems and automated monitoring, informal or careless transactions will be easier to detect. Ruoti specifically warned against instructing customers to deposit payment for a company’s goods or services into the personal account of an owner or partner. The account holder would then have to technically explain why commercial income entered an individual’s private assets.

She also cautioned against lending bank accounts to relatives or friends. Transfers of G. 30 million, G. 50 million or more leave a permanent record in the banking system. If the tax administration reviews the transaction, the account holder must document who owned the money, why it moved through the account and why the account served as a financial bridge.

Using corporate credit or debit cards for personal purchases is another practice Ruoti identified as risky. Her warning covers everyday spending such as supermarket purchases, travel, restaurants and appliances.