Presidential candidate Johnny Araya said on Thursday that he is “a victim of the Ministry of Finance (Ministerio de Hacienda)” because of an “error” in the notice he received from the Department of Taxation, on Wednesday, for information on five transactions.
The Partido Liberación Nacional (PLN) candidate added that he was the subject of a “media driven show” organized by union leader, Albino Vargas, who tweeted that Araya would be notified at his home, minutes before the notice arrived.
Taxation is requesting that the poitician report, within 10 days, provide information on five transactions: the purchase of a vehicle, the purchase of some furniture, a gift for his wife, the paying off of interest to the Banco de Costa Rica (BCR) on a loan, and a payment of ¢160 million colones to the Instituto Nacional de Seguros (INS) – state insurer.
Araya stated that he never made such payment to the INS. The state insurer confirmed Thursday night that there had been an error in their information systems, that the amount was actually a payment on an insurance policy for volunteers and athletres of the X Juegos Deportivos Centroamericanos 2013, in San José, an organization that was legally represented and chaired by the Araya.
As to the auto, furniture and gift, Araya said “I should have not reported them, they are personal purchases for which I should have not reported”. The same goes for the interest payment to the BCR, the candidate confirmed.
“I believe it is totally unfair what Taxation has done”, said Araya.
Araya also admitted that he may erred in calling the Ministro de Hacienda, Edgar Ayales, to learn more about the case. “Maybe it was inappropriate and I can recognize it as an error. However, I want to say I have been a victim of Hacienda because they are doing something in an undue manner, and when the information is so inaccurate, more reason not to have done it”.
Carlos Vargas, director of Taxation, said that any person or entity registered as a taxpayuer must file each year the income tax statement D-151, which was done by Araya.
Vargas explained taxpayers are required to reprot all purchases or sales of goods valued over ¢2.5 million colones (US$5.000) and professional services of more than ¢50.000 (US$100). In 2012, the Ley de Fortalecimiento Tributario (Income Tax Act) was amended, however, the amendement was suspended by the Constitutional Court.
Source: La Nacion
Right. Johnny is a victim and the hearts of every Costa Rican with a sixth grade education are probably bleeding for him. If there is a victim in this scenario it is Costa Rica. Provincial attitudes, lack of education and the influence of the Catholic church on politics in Costa Rica has created a safe haven for corruption and the nepotism that marks our political system. The next time we go to the polls it will not be to vote for PAC, it will be to vote out the PLN.
The hacienda is being mean to Johnny. Of the five expenditures in question, only one was not his personal expenditure, but he did represent and chair the organization that paid it. Still, Johnny focuses on the one slight inaccuracy and claims victim status, even though he concedes that he should have reported the other four. What is most surprising about politicians here is how often they flout the laws, even those that would be easy and painless to follow. If the past few years have shown anything, it is that people in public positions are no longer immune to scrutiny – after all, how many high officials have had to give up their positions because of noncompliance with tax and other laws? It is one thing (although still illegal) for private citizens to “fudge” on taxes, but it is sheer arrogance for public officials, especially those whose eyes have been set on the presidency for years, to do so.