"Net contributors are providing less and less taxes in relation to the services they receive, while net receivers are demanding more and more benefits compared to what they provide."
Despite the relatively small size of government relative to the economy, a factor which some international analysts point to as a factor which undermines a country's development, "...
The board of the Tax Administration has decided to terminate the tender process which had been proposed for obtaining a contract for external consultancy on how to increase revenues.
Days after announcing an interest in convening an international tender for consultancy services to improve fiscal management, the board of the Superintendency of Tax Administration (SAT) has reversed the decision.
Instead of contracting international consulting company through a tender it has been proposed that the SAT should turn to the Inter-American Center of Tax Administrations and other lower-cost options.
Experts on tax matters in Guatemala are looking for alternatives to the government's proposal to hold an international competition for services for fiscal management, with one of the first suggestions being, "...
Tax authorities estimate that tax revenues could increase by 8%, and from the amount of growth in earnings, the consulting firm would charge 30%.
Although the competition for hiring a company to advise the government on the management of taxes has not been carried out, already questions are arising about the cost that such a contract will represent for the State.
Confirmation has been given in Guatemala of a tender for consulting services to improve tax collection which will be launched before the end of 2014.
Although Rodrigo Montufar, chief of the Superintendency of Tax Administration (SAT) of Guatemala ".... did not specify the date on which the contest might open, he estimated that next year they will have a contract with the respective company because it is an obligation of the Board to ensure that the taxation target is reached," reported S21.com.gt".
There is no such thing as a free lunch. What is being borrowed today so that the state can continue carrying on with its criminal rate of consumption, will have to be paid for tomorrow, of course, with interest.
The analyst Juan Carlos Hidalgo, on his blog Por la Libre in Elfinancierocr.com, rightly describes the issuance of Eurobonds that the Costa Rican Congress has just approved, as what it really is: A deferred tax package.
Legislative approval will allow the government to take advantage of the record minimum rates in the international market, easing pressure on interest rates in the domestic market.
It will also decrease the pressure to solve the underlying problem, which is excessive government spending, especially that generated by the staff payroll, which not only continues to grow in quantity but also in the amount of their wages, on average far exceeding those of private sector workers.
The new standard adds control instruments and powers for the Ministry of Finance, regulating the lifting of banking secrecy by court order.
The new plan also proposes agreements to exchange tax information between the country and other nations, with the government aiming to removing Costa Rica from the gray list of the Organization for Economic Cooperation and Development (OECD).
The Internal Revenue Service (DGI) has added controls in order to increase revenues by chasing evaders and offenders.
Capital.com.pa state in their article that, "Preliminary investigations show that there are cases of companies that have been double billing and creating dubious loss statements, among other things, which is at odds with good corporate practices, giving a reason for DGI to implement the measures allowed by law."
High taxes and evasion eroding economic growth in Latin America and the Caribbean.
New IDB study says governments must simplify tax systems and reduce evasion
Complex tax systems and widespread evasion are distorting investment decisions by companies in Latin America and the Caribbean, reducing the efficiency of markets and preventing governments from investing in infrastructure, education and other key public goods.
High taxes and evasion eroding economic growth in Latin America and the Caribbean.
New IDB study says governments must simplify tax systems and reduce evasion
Complex tax systems and widespread evasion are distorting investment decisions by companies in Latin America and the Caribbean, reducing the efficiency of markets and preventing governments from investing in infrastructure, education and other key public goods.
Most companies are unprepared to apply the changes required by the new Tax Law.
This was confirmed by spokespersons from the private sector, who added they could spend months learning the new regulations, incurring in additional costs.
"Businessmen complain that not even the Tax Authority (DGI), is ready to comply with the changes", reported Laprensa.com.ni.