The Costa Rican Chamber of Food Industry notes that new taxes will lead to the informalisation of the activity.
From a press release by the Costa Rican Chamber of Food Industry (CACIA):
An encouragement to informal work and unemployment, is how the Costa Rican Chamber of Food Industry, CACIA, sees the proposed Fiscal Consolidation Programme of the Government, as part of an economic situation which is in no way adequate for the collection of taxes.
The technical redefinitions that make up a successful tax reform should be based on a reformulation of the social contract which establishes national goals.
Nacion.com reports that "According to Augusto de la Torre, Chief Economist at the World Bank, the fiscal debate is more than just an economic debate, it is almost a philosophical debate about the kind of state we want to have."
New guidelines from the Costa Rican Treasury Office will allow greater access to the most relevant data of companies who paid more than $500,000 in taxes in the past three years.
Large taxpayers now have the obligation to submit to the Directorate General of Taxation information on their financial status in unconsolidated digital format.
This measure is intended to increase oversight of the most important data of 500 companies which account for about 70% of the country's tax revenue. The Treasury defines major contributors to the company as those who paid more than $500,000 for taxes in the last three fiscal years.
The fiscal consolidation document presented by the Ministry of Finance of Costa Rica proposes considering surplus capital distributed by cooperatives and solidarity associations as passive income.
"Capital passive income, is, for example, dividends, mutual funds and bank deposits, among other things, which currently have different rates. The initiative proposes a single rate of tax for them. "
Experts say that if the Directorate General of Taxation has more autonomy and flexibility it could improve recovery in the country.
The document entitled "The path towards fiscal consolidation " published by the Ministry of Finance, aims to transform the Directorate General of Taxation (DGT) into an entity with greater autonomy in managing its resources and personnel.
The government has designed a strategy to change the international perception of the country as a tax haven in order to avoid discriminatory measures being taken against them.
From a press release by the Ministry of Foreign Affairs of Panama:
In order to end the discriminatory measures that Panama faces by being described as a tax haven the High Level Presidential Commission for the Defense of International and Financial Services, is looking at tools that could be used to defend the country on financial issues from the moment that they start, caused by being categorised as a tax haven.
Income accrued up to September rose by 20% compared to the same period last year, totaling $4.3 billion, representing a surplus of 5.9% above budget.
A statement from the Department of Revenue reads:
Current Income:
Current revenue collected in the month of September totaled B/.605 million, exceeding by B /. 148.7 million (32.6%) the budget for the period and registering a growth of B /.
The Cabinet Council is supporting a bill to approve an Agreement between the Republic of Panama and the Czech Republic for the avoidance of double taxation and to prevent tax evasion with respect to taxes on income and its protocol.
From a press release from the Presidency of Panama:
Cabinet approves agreement for double taxation and preventing tax evasion number 14
The bill was approved on its first reading; the final vote depends on the decision of the Constitutional Court over an appeal on the legislative process.
After 15 months in the drawers of the representatives of the Legislative Assembly, the tax reform bill passed on Wednesday in the first debate with the support of 31 MPs and 19 votes against.
"If approved, the Government would have tools to collect the equivalent of 1.5% of GDP (about ¢350,000 million, some $687.82 million) in new taxes, through a tax on value added (IVA in Spanish) and reforms on income and the selective consumption tax, among other changes," reported Nacion.com.
In order to fulfill his campaign promises, the new president, Otto Perez Molina, must achieve consensus for the approval of a tax reform.
For the former vice president of the Banco de Guatemala (Banguat), Mario Garcia Lara, the priority is "to bring order to public finances."
The journalist Lorena Alvarez summarizes in her article in Elperiodico.com.gt, opinions of analysts, economists and representatives from the private sector, regarding the new government’s priorities.
And apparently for bureaucracies in general, including those of international organizations; an "expert" from the Inter-American Development Bank is supporting tax reform in Costa Rica.
Although officially the IDB "does not advocate a tax burden or specific tax policy," one of its officials warmly supports the project to increase the tax burden to support the Costa Rican economy, to the point of suggesting that the tax burden be similar to Argentina’s.
Costa Rican industrialists believe the VAT exemption proposed by the Executive will be ineffective.
A press release from the Costa Rica Chamber of Industry states:
Surprised. This was the reaction of industrialists on learning of the filing of an amendment to the Solidarity Tax Act Project by the Ministry of the Economy and Ministry of Finance, relating to value added tax.
Unions and business associations are insisting that the economy will be damaged if the proposed tax reform is approved by the Executive.
The private sector is objecting to the negative impact that the reform will have on the national productive apparatus and consumers. Unions for their part say the new tax (Value Added Tax, VAT) will affect the finances of Costa Rican families.
Taxpayers may consult the Department of Taxation by email using digital signatures.
To make inquiries the taxpayer must first certify his/her digital signature as established by the Law on Certificates, Digital Signatures and Electronic Documents.
Francisco Villalobos, director general of the General Directorate of Direct Taxation (DGTD), said the new arrangement will increase response times and is in line with new policies to simplify procedures.