The UGPP is an entity that was created in 2007 to audit contributions, in order to avoid and control evasions. It controls Social Security contributions (health, pension, Arl) and Parafiscal contributions (Caja, Sena and Icbf), for all Colombian citizens and companies incorporated in the country.

Process to determine obligations

1.- Audit
What should I do if I am audited?
Prepare all the documentation and information, provide all the proof and details for the payrolls with which the IBC was calculated for the Social Security and parafiscal contributions.

> Information Required
• Monthly payrolls
• Trial balances
• Accounting ledgers related to payroll calculations and payments.
• Service and other accounting ledgers.
• General Ledger
• Supporting documentation that proves conditions of expatriates, pensioners and SENA interns.
*This should be sent with no more than 3 months of the notification being issued by the UGPP

> Requirement to declare or correct
Report in which the UGPP determines the type of evasion, the adjustments to be made and the penalties to be paid, based on the calculations prepared with the information delivered by the company. This report can be accepted or not by the company.

• The types of evasion can be:
o Inaccuracy
o Omission or Default
* The unit will issue this requirement within no more than 6 months
* The company has 3 months to respond by fully, or in part, accepting the charges.

2.- Settlement
If the company accepts the requirement to declare or correct, the process is finalized by applying the corresponding sanctions; otherwise, with the new evidence provided by the company, the UGPP will proceed with a new settlement and determination of obligations.
* The company has 2 months to respond to this settlement, accepting the charges or filing a reconsideration appeal.

3.- Reconsideration resource
This is the company’s last chance to provide the necessary evidence that will serve to recalculate the obligations to be paid. The Unit issues a final ruling with which the government channel is considered exhausted.

Once this resource is exhausted, the UGPP will proceed with the definitive collection of the amounts owed.
* The unit has a period of up to one year to issue the ruling.

Sanctions and Collection Process
1.- Sanctions
In all cases you must pay interest on arrears generated in the self-assessment of contributions. Additionally, the company must pay the UGPP the corresponding sanction, which will depend on the stage in which the process is located.

2.- Collection
• Persuasive: Seeks to obtain voluntary payment of obligations.
• Coercive: Seeks to obtain forced payment of the obligations (payment order, execution orders or precautionary measures)

Tips
The information must be delivered by means of a magnetic media and in the formats established by the UGPP on its website www.ugpp.gov.co

All the notifications issued by the UGPP must be answered, otherwise the Unit will give continuity to the process until it reaches the collection.

The information of balance sheets, accounts and payroll ledgers, must be duly certified by the legal representative and accountant or tax auditor.