Nora Ruoti warns against risky financial practices that should stop now

As Paraguay moves toward tighter financial monitoring and greater digitalization, tax specialist Nora Ruoti Cosp is warning about everyday habits that can create fiscal problems. She says an agreement between the National Tax Revenue Directorate, known as DNIT, and the Association of Banks of Paraguay does not give tax authorities extraordinary powers. Existing tax law already allowed officials to request financial information through regulated procedures.

The agreement does, however, improve coordination between private banks and the tax administration and speed up their responses. Greater digitalization and traceability mean that automated controls can expose informal or careless transactions more easily.

One common mistake involves a company telling a customer to deposit payment for a sale or service into the personal account of the owner or a partner. Ruoti says that, during an audit, the taxpayer would have to technically explain why business income entered an individual's private assets.

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Charge me to my personal account

She also cautions against lending a bank account to family members or friends. If significant sums enter the account, such as 30 million or 50 million guaraníes or more, the transaction leaves a permanent banking record. The account holder may then have to document who really owned the money, why it moved and why the account served as a financial bridge.

Using corporate credit or debit cards for supermarket purchases, travel, restaurants, appliances or family expenses is another risk, Ruoti says. Such spending requires tax and accounting support that often does not exist.

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I will lend you my account