Dian embargoes: What are they and how to avoid them?

Waking up to find your bank account frozen may seem like a nightmare, but for many taxpayers in Colombia, it's a reality that materializes when the DIAN takes steps to recover outstanding debts and ensure the nation has the income it needs to grow and that people comply with their tax obligations.

This is achieved through embargoes, one of the most effective tools available to the tax authorities to ensure compliance with tax obligations. Although it is a legal and legitimate procedure, it often arises from ignorance or failure to comply with prior requirements.

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According to Alegra's analysis, the purpose of DIAN seizures is to ensure payment of overdue or unreported taxes within the established timeframe. In simple terms, it's an action by which the entity temporarily retains a taxpayer's assets or financial resources until they become current with their obligations.

It's good to be up to date

However, they make it clear that this is not a definitive sanction, but rather a preventative measure intended to prevent evasion and ensure that the State receives the revenue it is entitled to, and that the process begins with a formal notification.

"This formal message informs you of the outstanding debt. If you don't respond or pay , the Dian can order banks or financial institutions to temporarily freeze your funds until the debt is settled. The goal is to guarantee payment and prevent you from transferring or spending the money owed," they explained.

In most cases, bank accounts are the first target of seizures. According to Alegra, this method allows the Tax Authority to act more quickly and effectively, as it is a liquid and easily traceable asset. However, the measure can also be applied to other assets, such as salaries, property, vehicles, or machinery.

"To check DIAN liens, you can log in to the agency's official website with your username and password. Within the platform, you'll find detailed information about your tax status and any active liens. You can also request information in person at local offices," they stated.

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The origin of a seizure is often due to common situations such as failure to file returns, filing them late or with errors, failing to pay VAT or withholding taxes, or simply ignoring prior notifications from the DIAN. In any of these cases, the failure to do so generates interest, penalties, and, ultimately, the possibility of a coercive collection process.

How to overcome the embargo?

If the embargo has already been ordered, its removal depends on how quickly the taxpayer regularizes their situation. Once the debt has been paid in full or in part, or when a payment agreement is formalized, the DIAN can proceed to lift the measure.

Alegra explained that under normal conditions, the process takes between five and fifteen business days, although this period may be extended depending on the complexity of the case and the administrative burden of the entity. In any case, constant communication and the presentation of payment documents are key to speeding up the process.

However, they made it clear that "the best way to avoid a seizure is prevention. Complying with tax obligations on time, regularly reviewing your tax status, and keeping your contact information updated in your RUT are practices that significantly reduce the risk."

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In the event of financial difficulties, the recommendation is to immediately contact the DIAN (National Tax Agency) to negotiate a payment agreement, emphasizing that this mechanism helps to halt coercive processes and demonstrate a willingness to comply, which improves the relationship with the entity and avoids more drastic measures. DANIEL HERNÁNDEZ NARANJO

Portfolio Journalist