After the announcement of the intention to increase the tax on the distribution of cement and fuel in Guatemala, businessmen believe that in this scenario of incipient economic recovery it is not a good idea to increase the tax burden.
In order to face the effects of the economic crisis generated by the covid-19 outbreak, Guatemalan authorities are already beginning to discuss the fiscal policy to be applied in 2021.
In this scenario of economic crisis, falling tax revenues and the need to finance recovery programs, in Guatemala and Costa Rica it is already proposed to increase current taxes and create new ones.
Guatemalan authorities are already beginning to discuss the fiscal policy they will apply in 2021, when the economy will have to face the effects of the economic crisis generated by the covid-19 outbreak.
On average in Costa Rica more than one in five companies classified as Large Taxpayers do not pay taxes.
EDITORIAL COMMENT:
When the Tax Department does not fully complete its duties, competition between companies is settled not by the quality of products or services, or for the excellence of its managerial staff and their strategic direction, but for the ability of their tax advisors to reduce the amount of taxes paid.
"Of the total potential tax collection from VAT, only 50% is charged, with 19% being lost from exemptions and tax schemes, many without justification, while the remaining 30% is lost through evasion charges."
From a statement issued by the ICEFI:
During a forum organized by the Central American Institute for Fiscal Studies (Icefi) and the Friedrich Ebert Foundation, a document was presented by the Icefi diagnosing the current situation of the Superintendency of Tax Administration (SAT) and an alternative roadmap was proposed for the rescue and reconstruction of the SAT.
The productive sectors are pointing out the negative effects of the planned increase from 13% to 15% in Value Added Tax, and insist on the need to resolve the fiscal problem by cutting state spending.
According to representatives of the productive sector, an increase in Value Added Tax (VAT) will have a negative effect on the economy. For the food industry, the 15% rise could result in the closure of production plants and an increase in informality among businesses.
A bill that the government plans to introduce in the Assembly before the end of year includes transforming the sales tax and into a value added tax and gradually raising the rate from 13% to 15%.
This increase should be available within two years in order to "... stabilize the size of the gap between government debt and gross domestic product (GDP) from 2019 and safeguard macroeconomic stability. "
An announcement has been made that 34 large companies suspected of tax evasion will be audited by foreign experts.
From an article on the web site of the Department of Revenue (DEI by its initials in Spanish):
International auditors to monitor 34 large companies that are evading the DEI
Tegucigalpa - The head of the Department of Revenue, (DEI), Miriam Guzman, confirmed on Friday that at the end of this month, international auditors will be arriving in the country to monitor 34 large companies where there is certainty that tax is being evaded.
The Ministry of Finance of Costa Rica is contemplating lifting bank secrecy for large contributors who declare minimal gains or losses on their tax returns.
Crhoy.com reports that "... after finding an increase in the number of companies reporting losses, the Large Taxpayers Department began implementing a new methodology for that group and found evidence that there may be information unreported by companies. "
The president of the Bank of Guatemala has stated that in order to sustain the fiscal debt, the tax burden in the Guatemalan economy will have to rise from 11% today to 14%.
An article on Lahora.com.gt reports that, Edgar Barquín president of the Bank of Guatemala, said "... in order to maintain economic stability and ensure social spending for the benefit of the population, the level of taxes needs to rise to 14 percent of GDP this year.
Extraordinary measures announced by the tax authorities will focus on reviewing withholding tax, declarations and verification of income tax.
Verification of statements of withholding agents, recalculation of retention for taxpayers with incomes over $3.886, monitoring omissions and frequent verification of cases of taxpayers of the higher tax interest, are part of the measures to be applied to the deficit of $87 million resulting from the last collection period.
Private sector urges the need for a national agreement to restrict state spending and fight corruption and tax evasion.
Eduardo Facussé, president of the Honduran Council of Private Enterprise (Cohep) states that the incoming government should convene a fiscal pact involving not only civil society but all sectors in the country.
"The pact should include restrictions on public spending, reducing corruption to the lowest levels, punishing criminals who erode the public purse, and punishing those who do not pay taxes," said Facussé to Latribuna.hn.
Between January and August 2013 $1.135 billion was raised in VAT on imports, while in the same period in 2012 the amount was $1.137 billion.
Data from the Tax Authority (SAT) shows that in terms of customs duties $157 million was collected, down by 22% compared to the $202.2 million reported in 2012.
"There has been no improvement and collections continue to decline.
A bill intends to give taxpayers the opportunity to get in order tax payments owed due to errors or inaccuracies up to the fiscal year 2011.
A press release from the Ministry of Economy and Finance of Panama reads:
The Government will provide an opportunity for taxpayers to manage their tax obligations with the National Revenue Authority (ANIP), which occurred due to inaccuracies or errors, exempting them from liability for such acts up to the fiscal year 2011, presented the head of the Ministry of Economy and Finance (MEF), Frank De Lima, by a bill before the full National Assembly.
The slowdown of the Costa Rican economy is evident in the figures regarded as "dramatic" by the minister of Finance.
While at the end of July 2012 the collection of General Sales Tax in Costa Rica increased by 14.3%, for the same period in 2013 there was a decrease of 2.9%.
Prensalibre.cr reports: "The figures, regarded as "dramatic" by the minister of Finance, Edgar Ayales, have been released in the midst of a slow economic scenario aimed at all sectors of the economy, according to the monthly index of economic activity (MIEA) ". According to Ayales, this means that taxes are tied to the economy are affected, as is the case with the sales tax.
In order to compensate for the resources that the government will not receive from taxes vetted by the Constitutional Court, the Tax Authority will increase audit pressure.
The decrease of $64 million in revenue, has led the Tax Authority of Guatemala (SAT by its initials in Spanish) to strengthen its control plan with which it supervises companies.
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