Economic Groups in Costa Rica

In Costa Rica there is no specific rule in tax law to define the formation, conduct and consequences of being a "economic interest group."

Wednesday, July 11, 2012

An article by Carlos Camacho points out some of the considerations that the taxpayer must keep in mind regarding the consequences of being defined as an "economic interest group", even though there are no specific regulations.

Camacho insists that the entrepreneur must be prepared to answer questions like "how come you represent so many companies which don’t report any profits?, Where has the capital for setting up this economic group come from, and what economic relationships are there between these companies? "

"In the fiscal phase, even in the absence of rules defining the links, the Tax Administration, now reinforced by the constitutional flaw mentioned above, is now disregarding transactions, establishing linkages, reassessing prices, and re-characterizing activities, based on the infra-legal standard, which has just been strengthened by the judgment of the Constitutional Court. "

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