In Panama a new constitutional ruling prevents outsourcing of tax collections to private natural and legal persons, repealing a presidential decree.
The Supreme Court (CSJ) declared as unconstitutional paragraph 3 and subsequent paragraph of Cabinet Decree 109 of May 7, 1970 that allowed the public function of tax collections to be carried out by private individuals and corporations, which was aimed at monitoring the collection of taxes.
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).
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 private sector in Costa Rica is having doubts over the ability of the Treasury to prevent information leaks, if approval is given to a requirement for companies to disclose shareholder information.
The business sector fears that the authorities will not be able to control possible leaks of confidential data which companies must provide if the decree proposed by the Directorate General of Taxation is approved. They claim that in the past information was and the actions were not punished in any way. Also, if the main objective is to verify the payment of transfer tax they are questioning why "... they are asking for information from all companies, whether or not they have goods that they can transfer. "
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