Credicorp Ltd.: Credicorp Takes Legal Action to Defend Rule of Law in Tax Dispute with SUNAT

Rhea-AI Summary

Credicorp Ltd. (NYSE:BAP), Peru's leading financial services holding company, has initiated legal action against SUNAT (Peruvian Tax Administration) regarding a tax dispute. The conflict centers on share transactions conducted in 2018 and 2019, where Grupo Crédito S.A. purchased Banco de Crédito del Perú shares from Credicorp through the Lima Stock Exchange.

SUNAT is now seeking over S/. 1.5 billion in alleged unpaid income tax and interest, despite these transactions being previously cleared by SUNAT's own Review Committee and being tax-exempt under Peruvian law at the time. The transactions were conducted transparently and approved by relevant regulatory bodies including SMV, SBS, and CAVALI.

The company states that no expense provisions are required under International Accounting Standards and will pursue all appropriate legal and administrative channels to address this matter.

Positive

• Transactions were previously validated by SUNAT's Review Committee as compliant
• Company maintains strong legal position with documented regulatory approvals from multiple authorities
• No expense provisions required under International Accounting Standards

Negative

• SUNAT seeking over S/. 1.5 billion in alleged unpaid taxes and interest
• Legal uncertainty created by tax authority's disregard of its own Review Committee's decision
• Potential impact on company's operations in Peru due to regulatory unpredictability

Insights

Legal & Financial Regulatory Expert

Credicorp faces significant legal battle with Peru's tax authority over S/.1.5B claim despite prior favorable rulings and regulatory approvals.

Credicorp's legal dispute with SUNAT represents a significant regulatory challenge with material financial implications. The tax authority is pursuing approximately S/.1.5 billion in alleged unpaid income tax plus interest related to 2018-2019 stock transactions that were previously deemed compliant by SUNAT's own Review Committee.

The transactions in question involved Grupo Crédito S.A. purchasing Banco de Crédito del Perú shares from Credicorp through the Lima Stock Exchange. These transactions were structured to qualify for income tax exemptions under Peruvian law at that time, which applied when transferred shares didn't exceed 10% of total outstanding shares within a 12-month period.

What's particularly concerning from a regulatory perspective is that these transactions had received multiple layers of regulatory approval - they were communicated to the securities regulator (SMV), approved by the banking regulator (SBS), and properly registered with CAVALI. More importantly, SUNAT's own Review Committee had previously validated these transactions and found no grounds for tax elusion claims.

SUNAT's decision to disregard its Review Committee's binding ruling represents an unusual regulatory action that creates significant legal uncertainty. While Credicorp states no accounting provisions are required under International Accounting Standards (suggesting they believe their position is strong), this case highlights growing regulatory risk in Peru's business environment.

The reopening of a previously resolved matter by the same regulatory body undermines legal predictability for businesses operating in Peru and could signal broader governance concerns for investors. The outcome will test Peru's commitment to regulatory consistency and the rule of law in financial markets.

Lima, June 30, 2025 (GLOBE NEWSWIRE) -- Lima, PERU, June 30, 2025 - Credicorp Ltd. (“Credicorp” or “the Company”) (NYSE:BAP | BVL: BAP), the leading financial services holding company in Peru with a presence in Chile, Colombia, Bolivia, and Panama, through its subsidiary Grupo Credito S.A. initiates legal action against the Peruvian Tax Administration (Superintendencia Nacional de Aduanas y de Administración Tributaria – SUNAT), for disregarding the law and the decision of SUNAT´s Review Committee (Comité Revisor), whose rulings are binding under current legislation. The Company expresses concern that SUNAT is ignoring the legal framework in effect at the time of the transactions in question, thereby undermining legal certainty for companies operating in Peru.

The transactions in question involved Grupo Crédito S.A. purchasing Banco de Crédito del Perú (BCP) shares from Credicorp Ltd. in 2018 and 2019, through the Lima Stock Exchange.  At the time, Peruvian law exempted such transactions from income tax, provided that the transferred shares did not exceed 10% of the total outstanding shares of the issuing company within a 12-month period.

These transactions were communicated to the Superintendencia del Mercado de Valores (SMV), approved by the Superintendencia de Banca, Seguros y AFP (SBS), and duly registered with Registro Central de Valores y Liquidaciones (CAVALI). They were conducted transparently and in full compliance with applicable legal and regulatory requirements.

Credicorp notes that this case was previously reviewed by SUNAT’s own Review Committee, which confirmed the authenticity of the transactions and found no grounds for tax elusion claims. Nevertheless, SUNAT has reopened the matter and is now seeking over S/. 1.5 billion in purported unpaid income tax and accrued interest. Credicorp views this action as a serious breach of legal predictability, given it involves both the disregard of established legal norms, and the reopening of a case already assessed and resolved by SUNAT’s own Review Committee. In accordance with International Accounting Standards, no expense provisions are necessary.

Credicorp is evaluating this new development and will respond through all appropriate legal and administrative channels. Grupo Crédito S.A., the entity involved, reaffirms its commitment to full regulatory and tax compliance, and to protecting the interests of its employees, clients, and investors.

About Credicorp:
Credicorp (NYSE: BAP) is the leading financial services holding company in Peru with presence in Chile, Colombia, Bolivia, and Panama. Credicorp has a diversified business portfolio organized into four lines of business: Universal Banking, through Banco de Crédito del Peru (“BCP”) and Banco de Crédito de Bolivia; Microfinance, through Mibanco in Peru and Colombia; Insurance & Pension Funds, through Grupo Pacifico and Prima AFP; and Investment Management & Advisory, through Credicorp Capital, Wealth Management at BCP and ASB Bank Corp.

For further information please contact the IR team:
investorrelations@credicorpperu.com
Investor Relations
Credicorp Ltd.

FAQ

What is the tax dispute between Credicorp (NYSE:BAP) and SUNAT about?

The dispute involves share transactions from 2018-2019 where Grupo Crédito S.A. purchased BCP shares from Credicorp through the Lima Stock Exchange. SUNAT is claiming over S/. 1.5 billion in unpaid taxes despite these transactions being tax-exempt at the time.

Why is Credicorp (BAP) taking legal action against SUNAT in 2025?

Credicorp is taking legal action because SUNAT is disregarding both the law in effect during the transactions and the decision of its own Review Committee, which had previously validated the transactions as compliant.

How much is SUNAT claiming from Credicorp in unpaid taxes?

SUNAT is seeking over S/. 1.5 billion in alleged unpaid income tax and accrued interest from Credicorp's subsidiary Grupo Crédito S.A.

Will Credicorp (NYSE:BAP) need to make provisions for the SUNAT tax claim?

No, according to the company, no expense provisions are necessary under International Accounting Standards.

Were Credicorp's 2018-2019 share transactions approved by regulators?

Yes, the transactions were approved by multiple regulatory bodies including the Superintendencia del Mercado de Valores (SMV), Superintendencia de Banca, Seguros y AFP (SBS), and CAVALI.