Warnings from Honduran businesses about the flight of capital resulting from the application of the controversial tax on banking transactions (known in Spanish as the ‘Tason’), are coming true.
This is how representatives from Honduran companies explained things, after statements from President Porfirio Lobo recognized a reduction in revenue because of the "Tason".
Businessmen are complaining that in labor lawsuits standards from the International Labour Organization are being applied even though they have not yet been ratified by the Honduran government.
The employers' organization in Honduras and the Honduran Council of Private Enterprise (COHEP), reported the application of legal rules not ratified by the Honduran government, creating legal uncertainty.
The Honduran Council of Private Enterprise will file an appeal of unconstitutionality over the decree that imposes a 1% income tax to those who declare losses.
Armando Urtecho, executive director of the Council indicated that Decree 42-2011, violates the constitution, and therefore does not count as an appeal but an action of unconstitutionality.
The decision was confirmed by the extraordinary meeting of presidents of the unions affiliated to Cohep.
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).
Businesses complain that the new law will give unlimited power to tax authorities to seize companies's information.
Armando Urtecho, director of the Honduran National Business Council (Cohep in Spanish), added that, "we are against too much power being given to the tax authority (DEI in Spanish) with less capacity remaining with judges to decide what is appropriate," reports Elheraldo.hn.
The new law would empower the Tax Authority to investigate bank accounts, which currently can only be done by courts of law.
Leaders of the Honduran Council of Private Enterprise (COHEP) noted that the Anti-Evasion Law violates bank secrecy.
Within the criticism drawn by the bill, the executive director of COHEP, Armando Urtecho, told Tiempo.hn that they consider harmful, the law to grant an administrative officer the power to break bank secrecy, as it always has been prerogative of a judge and for concrete facts but not to be made public."