Costa Rica: NO to Tax Collection Without Firm Ruling

A declaration of unconstitutionality has been given to the section of the tax code that allowed the Treasury to demand payment of penalties and interest allegedly owed on taxes before the right to a defense can be exercised.

Thursday, September 1, 2016

The slowness and inefficiency with which the Taxation department processes tax disputes, sometimes involving decades before there is a resolution, led to the outlandish idea on the part of lawmakers of putting the cart before the horse.  In order to solve the problem of stubborn evasions where people take advantage of the inefficiency of the Taxation department, a decision was made to take away from companies the right to contest the results of tax audits, forcing the taxpayer to pay the amounts ordered by these audits, within in a deadline of one month, in order to be able to initiate formal questioning of those results.  Now, the Supreme Court of Costa Rica has taken away that power from the Taxation department, declaring it unconstitutional.

See article in Nacion.com "Treasury Department Charges"



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El Salvador Withdraws Municipal Tax

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Noting that the right to property was violated, the tax that the Mayoral Office of San Salvador charged private companies using a calculation based on their assets has been declared unconstitutional.

The ruling in question eliminates Article 1.021.1 from the rate of Excise Taxes set by the Municipality of San Salvador, San Salvador department, which stated that the municipal tax collection must be calculated based on the assets of companies.

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Panama: Companies As Tax Retention Agents

February 2014

The Association of Banks of Panama has filed a lawsuit alleging that the concept of the tax retention agent is unconstitutional.

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Guatemala: Articles Suspended in Anti Evasion Act II

July 2013

The Constitutional Court has declared unconstitutional three articles of the Tax Code, which empowered the Tax Authority to make adjustments if it detected tax simulation.

S21.com.gt reports: "In Article 31 of Decree 4-2012 the concept of fiscal simulation was added, the aim was that the Superintendency of Tax Administration (SAT) made adjustments when delegates established that taxpayers had concealed the legal status of the business by giving a appearance different to that under which it was registered. "

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