Concern about Privacy Leaks for Shareholders

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.

Tuesday, February 17, 2015

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. "

The Chamber of Industries, in its observation indicates that "... The Treasury may not be able to ensure that information on ownership of shares is not violated and used by others for extortion, unfair competition or intimidation of individuals and families. ""... A similar concern was expressed Rónald Jimenez, president of the Costa Rican Union of Chambers and Associations of Private Enterprises and Francisco Llobet, President of the Chamber of Commerce of Costa Rica. "

The jurist Adrián Torrealba, coordinator of the Tax Committee of the Bar Association of Costa Rica, which is analyzing the issue and will submit its observations, told Nacion.com that "... There is a clear gap between the a motive stated in the decree and the scope of the reporting obligations established. " "... Entrepreneurs and other attorneys think the decree is excessive and have also questioned why a change of this magnitude, is being made through this method. "



More on this topic

Businessmen Yield Over Shareholder Registry

March 2016

The main private sector union in Costa Rica has agreed to form a technical team together with the government to create a database of corporate shareholders.

The Costa Rican Union of Chambers and Associations of Private Enterprise (Uccaep) agreed with the Government of the Republic to form a team (including tax and computer experts) to assess the conditions for creating a database of shareholders, reported Nacion.com.

Costa Rica: Shareholder Register Will Be Mandatory

January 2016

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).

NO to Delivering Shareholder Registry to Treasury

April 2015

The Chamber of Industries in Costa Rica has filed an administrative appeal against the decision by the Treasury department to require major contributors to produce records of their shareholders.

From a statement issued by the Chamber of Industries of Costa Rica (ICRC):

Chamber of Industries files for judicial review against provision of information on shareholders

Regulation Requires Companies to Disclose Information

January 2015

The decree submitted for public consultation by the General Directorate of Taxation of Costa Rica requires commercial companies to provide information about its members and the composition of its capital.

There is currently a period of 10 working days for companies that do not agree with the draft decree to declare so and make comments.