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.
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. "
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 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.
A drop in the collection of sales tax revenue by customs offices and of the internal sales tax confirms a drop in consumption by households and firms.
The decline in imports during the last year, caused a drop in sales tax revenue in customs, which in February, had a real decrease of 1.39% compared to the growth of 18.3% in the same period in 2012, according to calculations made by La Nacion using data supplied by the Ministry of Finance and the Central Bank.
The Department of Taxation in Costa Rica will send a list of tax defaulters to banks every month.
Francisco Villalobos, director of the entity, said that both banks and credit bureaus are not required to incorporate this information into their systems.
However, the move was seen as favorably by the banking sector, Franco Naranjo, President of the Costa Rican Banking Association (ABC), said, "We have not thoroughly analyzed the issue, but any information that is risk-related is welcomed by the guild. "
The state loses about $ 2.202 million in taxes, equivalent to 5.8% of the GDP.
Weekly publication El Financiero analyzed the main reasons why taxpayers are failing to pay taxes, stressing the evasion of the sales and income taxes.
According to the study, fraud in these 2 types of taxes implies $ 1.988 million per year, about 5.2% of GDP, money which does not go to the National Treasury.
Income tax evasion reached 64% in Costa Rica, accounting for 4% of the country’s GDP.
A study conducted by the Comptroller of the Republic remarks the need to reform existing legislation, in order to prevent evasion and increase controls.
“The Comptroller requested to punish those who evade taxes, and to change existing legislation to prevent or minimize tax avoidance and evasion”, reported Prensalibre.com.
The 15.2% decrease in customs tax collection for the month of March was the most influential in the outcome of the first quarter of 2009.
Guillermo Zúñiga, Minister of Finance, attributed these results to the global economic crisis.
Mipunto.com reported statements by the minister: "The global recession, which has caused a sharp slowdown in local economy, has taken its toll with regard to tax collection."