Overview
- APP formally notified Congress of the withdrawal on Oct. 21 following a wave of criticism from tax specialists, legal commentators and the public.
- The initiative, Project 12793-2025, sought to classify extortion payouts as extraordinary losses deductible with a notarized sworn declaration instead of judicial proof.
- Sponsors argued the change would ease the burden on victims who seldom file complaints, citing INEI data that only 15.7% of extortion cases are reported.
- Analysts warned the plan would distort income tax principles, open space for fraud and simulation, and push SUNAT into verification work akin to criminal investigation.
- Commentary also flagged that recurring “cupo” payments could be normalized for tax purposes and that the benefit would mainly reach firms in the general regime, turning the proposal into a political liability for APP.