Chile’s Tax Agency Gains Broad Data Access

Rights Digitales warns Chile’s Chamber of Deputies recently approved a bill—the “Reconstruction National” project—that expands state surveillance. The legislation modifies the Tax Code, allowing the Internal Revenue Service (SII) to cross-reference named data from all state agencies without clear justification. This measure violates the principle of data collection for specified purposes, potentially using health or social data for tax enforcement.

The bill also alters data flows regarding the Social Registry of Households, a system reaching about 84% of Chile’s population with sensitive data. It enables the SII to share tax information with the Directorate of Budget to “validate” income for social program recipients. Critics worry this will penalize vulnerable populations instead of supporting them.

These changes occur as Chile prepares to implement a new Personal Data Protection Law in December. Rights Digitales argues the bill creates irreversible data flows that contradict international privacy standards and may set a troubling precedent for Latin America. Debate must resume to protect digital rights.