Thursday 23 September 2021

Costa Rica Improves Tax Evasion Controls

Paying the bills


Today’s Vehicle Restriction September 23: Plates ending in “7 & 8” CANNOT circulate

QCOSTARICA - For today, Thursday, September 23, vehicles with...

Carlos Alvarado denounces violations of the Daniel Ortega regime to the UN

QCOSTARICA - In New York, Costa Rica President Carlos...

High Number of European Tourists Traveling to Costa Rica in Spite of the Pandemic

QCOSTARICA - A total of 21,969 tourists from European...

Costa Rica second last in economic recovery in the region

QCOSTARICA - The Central American region experiences very different...

TOP-5 real estate communities for a family life

Despite the fact that COVID-19 is slowing down the...

Today’s Vehicle Restriction September 22: Plates ending in “5 & 6” CANNOT circulate

QCOSTARICA - For today, Wednesday, September 22, vehicles with...

Group charged migrants US$22K to get them to the United States.

QCOSTARICA - A Costa Rican-Panamanian criminal structure charged migrants...
Paying the bills


axation uses 'big data' to search for and ask accounts to evaders
Hacienda (Ministry of Finance) to use ‘big data’ to search for and ask an accounting from tax evaders. Photo La Nacion

(QCOTARICA) The Directorate General of Taxation (Dirección General de Tributación) has hired an external service that cross matches taxpayer data in public databases to identify suspicious patterns that might suggest misconduct.

The project called “Modelo Predictivo” (Predictive Model) started to be implemented by the Ministry of Finance (Ministerio de Hacienda) this year, and aims to analyze the behavior of firms and individuals in order to identify suspicious or unusual patterns in the process of declaration of income and tax payments.

- Advertisement -

La Nacion reports that “…This is done by cross matching the information contained in their tax and informative declarations with data from public sites, for example, the Civil Registry, the National Registry of Property and listings of employers and insured persons in the Caja Costarricense de Seguro Social (CCSS), among other things.”

If anomalies are identified, the Hacienda,will carry out the appropriate investigation and, “…as a result, individuals and companies may be called on to rectify or correct their tax returns and, therefore, pay penalties that may be equivalent to 100% or 150% of the amount that was not paid.”

Fernando Rodríguez, Deputy Minister of Revenue, explained that this project focuses in three areas.

First is the identification of false suppliers (ie people or companies that were consigned as sellers of products or services that did not exist or were not dedicated to those tasks).

The second is the identification of people with unusual operations. This investigation consists in detecting allegedly anomalous behavior of registered professionals, that includes the concealment of money inflows, the report of higher expenditures than income, the purchase of movable and immovable property and people who assume that they are exempt when in fact they have to tax.

The third group to be analyzed will be importers.

- Advertisement -

But, Hacienda has a tough task ahead.

José María Oreamuno, a tax lawyer, explained that Hacienda has the power to request information related taxes, whether from the taxpayer or other related parties. However, this power is not unlimited, and conflicts can arise with constitutional principles of protection of the privacy of individuals and Hacienda’s request information.

On the other hand, Ricardo Vargas and Luis Carlos Mondragón, of the firm Oller Abogados, agreed that Hacienda can request any information considered transcendent, as long as it has a justification.


- Advertisement -

- Advertisement -
Paying the bills
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Government proposes collecting tax on illegal lotteries

QCOSTARICA - The Government on Thursday changed its bill for the...

Taxman closes PUSC headquarters due to unpaid taxes

QCOSTARICA - The Ministerio de Hacienda (Ministry of Finance), Costa Rica's...

Subscribe to our stories

To be updated with all the latest news, offers and special announcements.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.