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 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.

Shareholder Registry Revived in Costa Rica

June 2016

A bill approved in the Legislative Commission creates a register of shareholders to which the tax authority would have unrestricted access.

The main objective of the project against tax fraud is to enable the Directorate General of Taxation to seize the assets and bank accounts of taxpayers classified as delinquent, under the order of a judge. The embargoes could be extended for a period of up to two years.

Costa Rica: Details of Anti Tax Evasion Bill

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Limiting the deduction of interest from income tax and eliminating the exemption from payment of 15% for dividend distribution between companies are part of the changes included in the project.

The Bill to Improve Anti-Tax Fraud, presented by the Ministry of Finance amends various tax issues that must be taken into consideration by companies operating under Costa Rican law.

Costa Rica: Income Tax Statement to Request for Loans

July 2014

The Ministry of Finance is preparing a bill that would require filing an income tax statement before applying for a loan from a bank.

The purpose of this initiative against tax evasion is for the Ministry of Finance to "... have the same status as the Costa Rican Social Security Fund (CCSS), ie that people must be up to date with payments to the institution in order to make arrangements in the public sector. "