If You Go to the Dentist, Take Your Tax Return Form

The Directorate General of Taxation of Costa Rica has been given the power to require professionals to provide information which is "foreseeably relevant for tax purposes".

Wednesday, August 12, 2015

An article in Nacion.com reports that "... "An institutional criteria of the Ministry of Finance, of July 27, 2015, states that the Directorate General of Taxation (DGT) has the power to require liberal professionals to provide confidential customer information, as long as the data is not related to the query made of the specialist. "

The authorities of Costa Rican Treasury department are aiming to reduce tax evasion by professionals, which is favored because of the usual relationship of trust between customer and supplier, but this attempt to get information of tax interest on companies and individuals through the professionals who provide them services has been described as unconstitutional by several analysts.

"The Tax Administration is carrying out incorrect and confusing technical analysis, which brings various standards without any systematization, where the only thing clear is the interest of reaching a conclusion favorable to their interests even at the expense of the law," says Diego Salto, Specialist in Tax Law, in his column in El Financiero.

"... The Bar Association said the agency openly believes it is inappropriate for tax authorities to request such information from lawyers, as under the existing legal system, it is considered illegal and unconstitutional. "

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