The Supreme Court has not ruled in favor of the union of private companies, which sought to suspend the collection of income taxes of 1.5%.
Businessmen from different sectors showed their discontent after the Supreme Court rejected the appeal by the Honduran Council of Private Enterprise (COHEP) and announced that the collection of the (ISR) tax will remain in place.
The Constitutional Court has rejected the constitutional challenge presented by the business sector and left in place the collection of 1.5% income tax.
The Supreme Court has confirmed the income tax of 1.5%, which applies to companies reporting net sales of over $456 000, leaving exempt from this charge those reporting lesser incomes and those with less than two years of being established.
The Supreme Court has rejected a constitutional challenge filed by employers against the 1% tax levied on companies' gross revenue.
Latribuna.hn reports that "In April last year, Congress approved the legislation which amended Article 22 of the Income Tax Act, to improve government revenues, and the decree was issued on 31 May 2011 in the official Gazette. "
With 13 votes in favor and one against, the Court decided to declare Decree No. 283-2010 unconstitutional, arguing that the reform "violates constitutional principles such as sovereignty, territory and the form of government."
The Honduran Council of Private Enterprise says that reform of the Law on Income Tax is unconstitutional because it is confiscatory.
An article in Elheraldo.hn reports that "The Honduran Council of Private Enterprise (COHEP) argues that legislative approval of the Evasion Measures Act to income tax is unconstitutional, confiscatory and violates a judgment of the Supreme Court dated February 1, 2012. "
The Council of Private Enterprise and the Industrial Association of Honduras are to interpose a constitutional challenge.
In coming days, both associations will lodge appeals with the Supreme Court of Justice (CSJ) against the Law on Income and Efficiency in Public Expenditure.
An article on the website of La Tribuna reports, "The law which aims to challenge businesses establishes a fight against tax evasion, reduction of costs and compensation for credit and debit card users, and to separate the Administrative Office of Seized Goods (OABI) from the Public Ministry (MP), and which remains assigned to an agency of the executive branch. "
The Honduran Council of Private Enterprise has not ruled out filing a legal complaint in the Supreme Court of Justice against the approved decrees.
The approval by Congress of the ‘Population Security’ laws and ‘Efficiency of Income and Public Spending’ laws are poised to be declared unconstitutional, according to the Director of the Council of Honduran Business and Private Enterprise (COHEP in Spanish).
Business owners have already filed 72 legal suits against the executive decree that increased the minimum wage.
Latribuna.hn reports: "Yesterday there 72 suits in total calling for the suspension of the of the Executive Decree which increased the minimum wage to 5,500 lempiras for urban areas and 4.55 for rural areas, but up to now none of them have been taken up by the Constitutional Branch of the Supreme Court."
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More than a Law Firm. Lex Counsel & Co. is a business ally, an integral adviser and a support team for all our client’s needs. We established our firm to offer high quality services both at national and international level, under a renewed professional proposal, endorsed on standards that guarantee options abilities, personal and permanent contact and quality results on every transaction we intervene.
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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.
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