Costa Rica Improves Anti Evasion Controls

The Directorate General of Taxation has hired an external service that cross matches taxpayer data in public databases to identify suspicious patterns that might suggest misconduct.

Monday, November 14, 2016

The project called Predictive Model started to be implemented by the Ministry of Finance of Costa Rica this year, and aims to analyze the behavior of firms and individuals in order to identify suspicious or unusual patterns in the process of declaration of income and tax payments.

Nacion.com reports that "...This is done by cross matching the information contained in their tax and informative declarations with data from public sites, for example, the Civil Registry, the National Registry of Property and listings of employers and insured persons in the Costa Rican Department of Social Security, among other things."

If anomalies are identified, the Directorate General of Taxation is responsible for carrying out the appropriate investigation and, "...As a result, individuals and companies may be called on to rectify or correct their tax returns and, therefore, pay penalties that may be equivalent to 100% or 150% of the amount that was not paid."

The Treasury is currently using the model in two broad areas: identification of fake suppliers and identification of people with unusual operations. In a third instance the Treasury is analyzing the behavior of importers.



More on this topic

Big Data Improves Tax Collection

May 2018

The predictive model designed with data mining techniques used by the Ministry of Finance in Costa Rica has detected payments to third parties totalling more than $31 million.

By cross matching information from the 132 databases available to the Ministry of Finance, the Tax Intelligence Office is trying to predict which companies are more likely to evade tax payments, depending on their historical behavior measured through transactions, tax returns and other data. By linking together all of the information, they are identifying patterns of behavior similar to those of other companies that have evaded taxes in the past.

Big Data to Combat Tax Evasion

May 2017

In Costa Rica, the Ministry of Finance is using a predictive model designed with data mining techniques to determine the behavioral patterns of companies that might be circumventing tax payments.

Analyzing and crossing checking historical information from multiple databases, the statistical model used by the Directorate General of Taxation attempts to predict which companies are more likely to evade paying taxes depending on their historical behavior measured through transactions, tax returns and other data. By linking all of the information, they identify patterns of behavior similar to those of other companies that have evaded taxes in the past.

Amazing what a Good Tax Advisor Can Achieve

November 2015

On average in Costa Rica more than one in five companies classified as Large Taxpayers do not pay taxes.

EDITORIAL COMMENT:
When the Tax Department does not fully complete its duties, competition between companies is settled not by the quality of products or services, or for the excellence of its managerial staff and their strategic direction, but for the ability of their tax advisors to reduce the amount of taxes paid.

Costa Rica: More Time to Submit Information to Treasury

March 2015

The General Department of Taxation has extended until March 19th the deadline for companies classified as large taxpayers to provide the information required for tax purposes.

The General Department of Taxation has tightened controls on large taxpayers, implementing a new standard called Multifunctional Scheduled Objective Analysis (AMPO by its initials in Spanish), through which it requires companies to submit information such as "... data from its shareholders and its imports and corporations, among other information of significance to tax matters. "

 close (x)

Receive more news about Procurement

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Tailor made software for construction companies

O4Bi is a system that allows to control and manage what a company needs: the complete process of development of works, accounts receivable, treasury, banks, sales and accounting.
O4Bi is a very robust system that allows to control and...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Mar 27)
Brent Crude Oil
28.25
Coffee "C"
116.75
Gold
1,644
Silver
14.625