It has been announced that from March a group of large taxpayers will have to start using the electronic billing system mandatorily.
According to the Directorate General of Taxation, they will begin with a group of companies considered large taxpayers, who have already received training to implement the use of electronic invoices starting from March.
The Directorate General of Taxation has hired an external service that cross matches taxpayer data in public databases to identify suspicious patterns that might suggest misconduct.
The project called Predictive Model started to be implemented by the Ministry of Finance of Costa Rica this year, and aims to analyze the behavior of firms and individuals in order to identify suspicious or unusual patterns in the process of declaration of income and tax payments.
A declaration of unconstitutionality has been given to the section of the tax code that allowed the Treasury to demand payment of penalties and interest allegedly owed on taxes before the right to a defense can be exercised.
The slowness and inefficiency with which the Taxation department processes tax disputes, sometimes involving decades before there is a resolution, led to the outlandish idea on the part of lawmakers of putting the cart before the horse.In order to solve the problem of stubborn evasions where people take advantage of the inefficiency of the Taxation department, a decision was made to take away from companies the right to contest the results of tax audits, forcing the taxpayer to pay the amounts ordered by these audits, within in a deadline of one month, in order to be able to initiate formal questioning of those results.Now, the Supreme Court of Costa Rica has taken away that power from the Taxation department, declaring it unconstitutional.
A bill approved in the Legislative Commission creates a register of shareholders to which the tax authority would have unrestricted access.
The main objective of the project against tax fraud is to enable the Directorate General of Taxation to seize the assets and bank accounts of taxpayers classified as delinquent, under the order of a judge.The embargoes could be extended for a period of up to two years.
Two years behind schedule, an announcement has been made that in January 2017 the electronic billing system will be implemented by Empresa de Servicios Públicos de Heredia.
From a statement issued by the Ministry of Finance in Costa Rica:
Empresa de Servicios Públicos de Heredia (ESPH), was selected by the Ministry of Finance for the development, implementation and operation of an electronic invoicing system, which will start in January 2017.ESPH together with another company which is a specialist in the subject, will be responsible for developing the software and putting into use the technology platform (networks, servers, connectivity, among other things, as well as the reception, validation and storage of electronic receipts or invoices.
An appeal by the private sector has been rejected and the Treasury will be able to require large taxpayers to be included in the AMPO system which contains information deemed sensitive.
From a statement issued by the Ministry of Finance:
The Ministry of Justice has finally decided in favor of the Tax Administration, in the process that the Chamber of Food Industry and several coadjuvants filed against the Scheduled Analysis Multifunctional and Target tool (AMPO).
On average in Costa Rica more than one in five companies classified as Large Taxpayers do not pay taxes.
When the Tax Department does not fully complete its duties, competition between companies is settled not by the quality of products or services, or for the excellence of its managerial staff and their strategic direction, but for the ability of their tax advisors to reduce the amount of taxes paid.
From October it will be mandatory for declarations for the traditional and simplified taxation regimes for income taxes, sales, withholding tax and solidarity tax to be made using the electronic platform.
From a statement issued by the Ministry of Finance:
More than 500 companies categorized as large taxpayers will be able to avoid providing sensitive information on themselves and third parties, such as suppliers and shareholders, to the Directorate General of Taxation.
From a statement issued by the Institute of Chartered Accountants of Costa Rica (CCPCR):
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".
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 General Department of Taxation has extended until March 19th the deadline for companies classified as large taxpayers to provide the information required for tax purposes.
The General Department of Taxation has tightened controls on large taxpayers, implementing a new standard called Multifunctional Scheduled Objective Analysis (AMPO by its initials in Spanish), through which it requires companies to submit information such as "... data from its shareholders and its imports and corporations, among other information of significance to tax matters. "
Up until December 31, 2015 a moratorium will be in effect on the payment of the 13% sales tax on recreational tourism activities in Costa Rica.
The tourism sector will accept the new tax on their terms: desiring an alternative draft law as soon as possible, which exempts legislative procedures and exonerates the charges made before the moratorium.
Ranging from law suits to revoke the decision, to a request for injunction against the Director of Taxation, legal measures are being taken by the guild in Costa Rica to get the collection of the sales tax suspended.
The decision to charge sales tax on companies offering tourist services, retrospectively since 2009, will generate the "... failure of many businesses," warn the authorities of the National Chamber of Tourism (Canatur).
Maranco Belize offer fast reliable service, modern equipment, competitive rates, 70 year experience worldwide whether your needs are for farming, industrial, private house lots, community projects. We have drilled successful water wells producing fresh...
Chicas Vilchez & Ruiz is a professional finance and accounting firm providing Auditing, Consulting, Outsourcing, and Tax services in El Salvador, Central America and the United States.
Operates in El Salvador, Costa Rica, Guatemala, Panama, Honduras and Nicaragua
Phone: (503) 2264 8069