The Ministry's request to Congress includes more controls when issuing special invoices for agricultural producers, the elimination of tax credit for small taxpayers and reestablishing the tobacco tax.
Prensalibre.com printed comments from Deputy Finance Minister Marco Livio Diaz, "... the first change is that when an exporter purchases from an unregistered producer, the latter will have to extend a special invoice and retain 5 percent as income tax (ISR)."
There is urgent need to strengthen the Superintendence of Tax Administration (SAT) with audit and control instruments.
Tax evasion reached $ 2,500 million, and businessmen insist that before a tax reform is passed, increasing tax burden and affecting competitiveness in the country, it is required "to improve the fight against tax evasion and customs smuggling."
A new attempt is being made by the Álvaro Colom government to increase tax collection by enforcing the so-called 'Anti-evasion Law'.
The bill contains administrative measures to improve control over and auditing of existing taxes as well as standardize aspects that seek to combat tax and customs fraud and smuggling, according to a communication from the Finance Ministry.
The Government of Costa Rica will create a new Special Fraud Unit and has issued a directive to restrict settlements in cases of tax evasion.
A statement from the Presidential House reads:
The President of the Republic, Laura Chinchilla Miranda said that "Costa Rica has been taking steps in the right direction to improve tax administration, not only have we implemented leading-edge management models, but we have also proposed major changes to the laws of both taxes and procedures demonstrating a clear conviction and commitment by this Administration to improve public finances with a strong desire to work on the structural failure of our tax system. "
The new Solís administration plans to establish the Value Added Tax and demand proof of tax payment for procedures in public institutions and on application for bank loans.
The tax reform being prepared includes a bill to reform income tax. This is part of a project by the Ministry of Finance which includes 55 specific actions among which are changes in the area of income, reducing government spending and control of state borrowing.
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