Costa Rica: Taxation Department with Powers of Seizure

A bill to improve the fight against tax fraud authorizes the tax authorities to seize the assets and bank accounts of delinquent taxpayers, without a warrant from a judge.

Friday, May 15, 2015

An article in Nacion.com reports that the Technical Services Department of the Legislative Assembly has proposed a rule that "... could affect property rights and the privacy of individuals because it would allow Taxation officials to take possession of any money deposited in bank accounts, income from salaries and pensions. " and all this "... without a warrant, the Tax Administration would be able to seize assets and enter business establishments."

The draft project is the first by the Solis administration submitted for approval by the Legislative Assembly, among their plans to correct the widening fiscal deficit by increasing revenues through a reduction in tax evasion.

"... The Ministry of Finance estimates that, with the approval of this project, tax revenues will increase by ¢100,000 million annually; ie 0.3% of gross domestic product (GDP). "

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Opposition to Embargo on Tax Evasion

August 2016

The legislative opposition in Costa Rica has once again submitted a replacement text for the law against tax fraud, eliminating from the project the seizure of bank accounts of companies suspected of tax evasion.

With the motion filed by the opposition deputies are aiming to prevent the Directorate General of Taxation from having the capacity to seize or ask a judge to seize bank accounts of taxpayers suspected of tax evasion.

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