Tuesday 28 March 2023

Eli Feinzaig: “Approving a world income would be the worst stupidity”

The objective is to remove Costa Rica from the European Union gray list

Paying the bills


“Mordidas” or “Chorizos” may soon be back at Transito

RICOS Q - There as a time when I...

Court ruling: UBER must pay vacations, bonuses and social security to its drivers

QCOSTARICA - The Juzgado de Trabajo del Tercer Circuito...

What to Look for When Migrating to Office 365?

Office 365 is Microsoft's idea of the future of...

Bovada vs Fanduel – which is the best online betting platform?

Bovada vs Fanduel – What's the Difference? As the online...

EduBirdie Review: Academic Writing Service Comprehensive Analysis

Detailed Edubirdie Review:  About the Service Official website of the...

Bomberos report on average two vehicle fires per day

QCOSTARICA - The Cuerpo de Bomberos (Fire Department) reported...

Government signs decree to eliminate mandatory vaccination against Covid-19 in the elderly

QCOSTARICA - President Rodrigo Chaves, signed the decree that...

Dollar Exchange

¢541.05 Buy

¢547.52 Sell

28 March 2023 - At The Banks - BCCR

Paying the bills


QCOSTARICA – Costa Rica’s high tax evasion – of up to US$3 billion a year – demonstrates that the Ministry of Finance is not capable of adequately collecting existing taxes, therefore giving tax authorities more responsibilities and a larger tax base was qualified by legislator and former presidential candidate, Eli Feinzaig, as “stupid.”

The lack of resources would mean that Costa Rica cannot have control over the collection of worldwide income, according to Eli Feinzaig, head of the faction of the Partido Liberal Progresista (PLP). La Republica

The head of the Partido Liberal Progresista (PLP) legislative faction, added that there is a risk that evasion will increase, since auditors would have to use their time and resources to pursue taxpayers outside the country, neglecting the collection of taxes at home.

Currently, the country has only two auditors and only two are dedicated to fraud issues, so there is a significant lack of resources, according to Feinzaig.

- Advertisement -

“Approving world income would be the worst stupidity that this country can do. Costa Rica does not know how to collect taxes well (…) If we continue to press for world income, what will happen is that internal collection will be affected,” Feinzaig said.

The possibility of approving a world income law was put on the table for discussion by Nogui Acosta, Minister of Finance.

The absence of legislation on this issue – according to the government – meant that Costa Rica was considered non-cooperative in terms of tax information by the European bloc since February 14.

Read more: European Union to “Grey List” Costa Rica

And it is that the guidelines of this commercial block establish that the passive income that a person or company generates abroad, should be taxed in Costa Rica, in order to avoid “unfair competition” between the tax regimes of the countries. Until the country corrects this, it will remain on the gray list of that trading bloc.

However, tax lawyers, businessmen, and some legislators believe that a world income is not necessary to remove Costa Rica from the gray list.

- Advertisement -

The fraction of the Partido Unidad Social Cristiana (PUSC) presented a proposal that will allow Costa Rica to recover its status as a cooperative nation in fiscal matters with the European Union (EU) without the need to resort to new taxes or greater charges to the Costa Rican productive sector.

The proposal implies the use of principles of good governance, such as fiscal transparency, tax equity and international standards against the erosion of the tax base and profit shifting.

“From the PUSC we are proposing to the Executive Branch this important bill to reverse this situation and counteract the effects that may be generated by the inclusion of Costa Rica on this gray list of the European Union. This proposal does not contain new taxes nor will it hit the productive sector. It is an alternative that has already been successfully implemented in other countries in terms of fiscal cooperation and transparency and that we can replicate here,” said Daniela Rojas, PUSC legislator.

On February 14, several countries were included in the gray list of non-cooperative nations in tax matters by the European Union, including Costa Rica:

  • American Samoa
  • Samoa
  • Anguilla
  • Bahamas
  • British Virgin Islands
  • US Virgin Islands
  • Marshall Islands
  • Turks and Caicos Islands
  • Fiji
  • Guam
  • Palau
  • Panama
  • Russia
  • Trinidad and Tobago
  • Vanuatu
- Advertisement -
Paying the bills
Avatar photo
"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

Goverment “insisting” on the sale of the BCR

QCOSTARICA - The government of Rodrigo Chaves is insisting on the...

Blaming the other guy: President Chaves describes the previous government as “irresponsible and negligent”

QCOSTARICA - President Rodrigo Chaves described the previous government as "irresponsible...

Subscribe to our stories

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