1) Introduction

When talking about tax code models for Latin America and the Caribbean (LAC), the technical and doctrinal debate revolves around two fundamental references that have marked different stages of the regional regulatory development.

The first of these is the 1967 Model Tax Code for Latin America, promoted by the Organization of American States (OAS) and the Inter-American Development Bank (IDB), which laid the foundations for a common legal structure in tax matters, guided by the essential principles of tax law -material, formal, procedural and criminal- in harmony with the Latin American constitutions and doctrine of the time.

The second, more recent one (which is already 10 years old, since its last update in 2015), is the 2015 CIAT Model Tax Code [1], prepared by the Inter-American Center of Tax Administrations (CIAT), the IDB and GIZ [2]. This proposal updates the regulatory approach to align it with contemporary challenges, integrating operational efficiency, digital transformation, international cooperation and taxpayer assistance in an increasingly globalized and digitalized tax environment.

Both models, although conceived in different historical contexts, remain essential reference points for tax reforms in the region. While the 1967 model provided a solid dogmatic basis, the 2015 model responds to the need to adapt tax legislation to the 21st century.

2) Development

For decades, tax systems in LAC have oscillated between two points: regulatory stability and the imperative need to adapt to a constantly changing economic and technological reality. This tension is clearly seen when comparing these two tax code models promoted in the region.

The 1967 model, although avant-garde at the time, responded to an analogical context: manual processes, paper records and face-to-face attention. An eloquent example is found in its Article 145 on notifications, which provides exclusively for physical means such as postal mail or personal delivery.

In contrast, the 2015 CIAT model not only recognizes the digitalization and digital transformation of the Tax Administration but incorporates it as a central axis. For example, Articles 81 and 87 [3] expressly establish the validity of notifications by electronic means, including electronic mailboxes, alert systems and mechanisms that guarantee authenticity, integrity and reception.
Moreover, Title III of the 2015 CIAT model, in its Section 5, entitled “Electronic Tax Administration”, introduces an advanced regulation of technological means. Articles 96, 97 and 98 [4], without prejudice to other aspects established throughout the model, establish some essential elements related to: 1) The automation of procedures, 2) The use of electronic programs, 3) The creation of electronic mailboxes and 4) The legal equivalence of digital documents.

As the model itself indicates in comment 1 of Article 96, regarding the use of electronic, computer and telematic technologies by the Tax Administration, this regulation must be kept sufficiently flexible so as not to hinder the continuous adaptation to technological advances.

“Articles 96 to 98 have been grouped in an independent section that regulates the electronic Tax Administration based on the consideration that, being a matter subject to the vertiginous rhythms imposed by the technological evolution itself, we should not establish a rigid regulation that prevents adaptation to a changing environment. At the same time, it is considered appropriate that the Model does not exhaust the regulation of this matter as there are other general rules involved in this matter (electronic signature, protection of personal rights, etc.)” (Italics is ours).

However, for some authors, the speed of technological change exceeds even the most ambitious forecasts. For today, we are faced with a tax ecosystem in which big data, artificial intelligence (AI), blockchain technology and other digital tools not only alter administrative procedures but redefine the very structure of tax law and the links between administration and taxpayer.
This raises the following two questions: Can a tax code model remain in force for decades without being updated in the face of emerging technologies? Was the foresight of the 2015 model sufficient in the face of the dizzying digital progress we are experiencing today?

The main purpose of this article is not to answer the above two questions, but it does have the objective that each reader can reflect and respond individually in his or her inner self, according to the arguments presented here.

However, what is indisputable is that the digitalization and digital transformation of the tax administrations in Latin America and the Caribbean[5] cannot move forward in isolation from regulatory development[6]. Tax provisions must evolve to incorporate not only current technologies, but also emerging ones, ensuring the protection of personal data, the legal security of taxpayers in automated environments and compliance with fundamental principles such as legality, due process and fairness.

The incorporation of technology should not be seen as a simple operational tool. It is, in fact, a structural dimension of contemporary tax law. We must “think digital from a normative point of view”[7], understanding that the challenges are also constitutional, ethical and social.

The balance between technology and law is today the new art of governing with justice in the digital age. Therefore, the need to review, update and strengthen the regulatory frameworks governing our tax administrations is a priority, ensuring that they are prepared to perform their functions in an environment marked by permanent innovation, data intelligence, digital governance and citizen trust.

3) Conclusion

The 1967 Model Tax Code, promoted by the OAS and the IDB, establishes absolutely nothing with respect to digital technologies, this is due to the context of its time: a predominantly analog economy, with paper-based tax administrations, manual records and face-to-face processes.

The 2015 CIAT Model Tax Code, promoted by CIAT, IDB and GIZ, incorporates key elements in relation to digital technologies, due to the context of its time: a globalized and interconnected economy, marked by the dizzying advance of digitalization, ¨the massive use of information and communication technologies¨, the automation of administrative processes and the growing demand for efficiency, transparency and taxpayer assistance by the tax administrations.
This new scenario recognizes that tax management must be supported by technological tools that facilitate both voluntary compliance and tax control, while ensuring interoperability, data protection and legal certainty in digital environments.

[1]CIAT Model Tax Code. An approach based on the Ibero-American experience 2015..  https://www.ciat.org/Biblioteca/DocumentosTecnicos/Espanol/2015_Modelo_Codigo_Tributario_CIAT.pdf (Web Access May 25, 2025). It is important to highlight that the CIAT Model Tax Code was published in its first version in 1997, then in 2006 a second version was published and finally in 2015 the third version, which is still in force today..

[2] The GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit) is the German development cooperation agency, which offers solutions and services for international cooperation in various countries.

[3] https://www.ciat.org/Biblioteca/DocumentosTecnicos/Espanol/2015_Modelo_Codigo_Tributario_CIAT.pdf (Web Access May 25, 2025). CIAT Code Model (2015):

“Article 81. Forms of notification.

Notifications shall be made in any of the following ways and without prejudice to the order of priority indicated in Article 85:

1. a) Personally.
2. b) By public or private mail, at the tax domicile or at the place expressly indicated to receive notifications.
3. c) By letter, in the circumstances indicated in numeral 3 of article 83.
4. d) By appearance and administrative record, in accordance with the procedure indicated in article 85.
5. e) By electronic or facsimile communication systems, provided that the correct reception by the addressee is guaranteed.
6. f) By physical and electronic stratus.” “Article 87. Notification by electronic and telematic means.

1. The Tax Administration may make notifications in the electronic mailbox referred to in Article 98, provided that the sender and recipient of the notification are reliably identified..
2. Notifications made in this mailbox will produce the same effects as those made at the tax domicile..
3. Without prejudice to the provisions of numeral 4 below, in order for the notification to be made using the electronic mailbox, the interested party shall be required to have indicated such means as preferential or to have expressly consented to its use. In these cases, the notification shall be deemed to have been made for all legal purposes on the fifth working day following the day on which the document was entered in the electronic mailbox..
4. The Tax Administration may establish by regulation the obligation to have a permanent electronic mailbox, which will replace the tax domicile as the place to receive notifications and may even prevent the possibility of establishing another special domicile as provided for in paragraph 3 of Article 82..
5. In case of non-compliance with any duty corresponding to the taxpayer for the assignment of an electronic mailbox, the sanction indicated in article 175 shall be applied and the notification shall be made according to the non-electronic means provided in previous articles..
6. The notification system shall accredit the transmission, the dates and times of the deposit of the notification in the electronic mailbox assigned to the interested party, the access of the latter to the content of the notification message for the case of numeral 3 and the fact that the full content of the same has been made available.”

[4] CIAT Model Tax Code. An approach based on the Ibero-American experience in 2015 https://www.ciat.org/Biblioteca/DocumentosTecnicos/Espanol/2015_Modelo_Codigo_Tributario_CIAT.pdf (Web Access May 25, 2025).

[5] Regarding the digitalization and digital transformation of the Tax Administration in Latin America and the Caribbean (LAC), you can consult my previous article at the following link: https://www.ciat.org/digitalizacion-y-transformacion-digital-de-la-administracion-tributaria-en-america-latina-y-el-caribe-alc-mas-alla-de-la-factura-electronica/ (Web Access May 25, 2025)

[6] https://publications.iadb.org/es/transformacion-digital-en-las-administraciones-tributarias-de-america-latina-chile (Web Access May 25, 2025).

[7] https://redtiempodelosderechos.com/wp-content/uploads/2024/02/el-constitucionalismo-digital-wp-25-23.pdf?utm_source=chatgpt.com (Web Access May 25, 2025).

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