Tax avoidance in Chile

It's pretty common to be asked "boleta o factura" (bill and invoice respectively) when shopping in a Depot or Supermarket. At first sight you are not really concerned about it. It's perfectly fine and reasonable if you want to make a purchase for oneself to choose "boleta" and when the purchase is for your company you choose "factura". Then, you might be wondering what's this difference for. Why do they have different bills depending on who is getting the goods? The answer is simple not so simple. This is Chile's tax avoidance at its best, now you probably want to know what this means, and what are its effects on Chilean economy and its population. Everytime a company owner makes a purchase using the "factura" system to buy an item which will not be used for their company but for their personal use instead they are avoiding taxes. The negative effects of this process are a lot, and really dangerous. That's because taxes are destinated to help improve the State run institutions, such as the military forces (army, air force, navy) education and healthcare among many others. Most of this State owned services are used by the poorest population, nevertheless it affects the whole society anyway. That's the reason why you should be aware of this method and help prevent it, in case you get to see it.