Welcome to 2014 & New Project on Corporate Tax Law
Welcome to 2014.
Costa Rica prepares itself for a new 4 year term of a party which is still to be determined in a second round of votes between PAC and Liberacion Nacional. By the time you read this we will probably be ready for a new vote and a final decision.
A NEW PROJECT:
Costa Rican tax authorities have now started a new offensive. This time they are trying to do away with the secrecy of the corporate ownership. Although in Costa Rica the shares are nominal, the information is private and may only be accessed by authorities via a judicial order.
With this new initiative, tax authorities are trying to change the rules and are trying to make an obligation of all companies to file a list of their stock holders every 3 months. They justify this decision under the provision that was created last year that collects transfer tax when you assign shares of a company that has assets. They are trying to have their interpretation of the law passed as a rule mandatory for all taxpayers and not as a formal change of the law.
Those of us who practice tax law are opposing this initiative as this is a change of a legal obligation via an interpretation and not a validly enacted law. Furthermore, privacy issues are at stake which has constitutional protection.