In the case of failure to pay withholding taxes when they have already been withheld, the one-time fine increases to 100 percent. Infringements of the rules governing recordkeeping and supporting documentation of business operations, presentation of tax returns and payment or withholding of taxes are punished according to the rules established in the Tax Code. Fraud concepts and the related punishment are also established in the Tax Code. The fine for nonpayment can reach 5 times the amount of the taxes due and 15 times the amount due for offenses involving fraud. In such cases, the taxpayer must be notified and has the right to submit a defense.
Tax fraud is considered punishable by the criminal courts.
Tax liabilities related to any one financial year are statute-barred five calendar years after the end of the year in which the closing date falls. This period is extended to ten calendar years in case of failure to file sworn declarations, failure to register with the Tax authorities or fraud. There is no personal income or estate tax in Uruguay. Individuals as such are subject only to capital tax. In principle, the procedures for taxing individuals are similar to those applicable to corporations.