Costa Rica digital treasury and forum for large taxpayers

"The stability of this country depends on all of us paying taxes and government accountability" Nogui Acosta. The last two weeks were transcendental for the Ministry of Finance and undoubtedly to point for the history of tax management in our country. On the one hand, last Tuesday was launched the...

Published on

06/11/2023
Blog
ics consultants office

"The stability of this country depends on all of us paying taxes and government accountability" Nogui Acosta.

The last two weeks were transcendental for the Ministry of Finance and undoubtedly to point to the history of tax management in our country. On the one hand, last Tuesday the Costa Rica digital treasury project was launched, with what seem to be the right keys for the future of tax management: a single tax registry, a unified tax current account, indicators and statistics in real time, electronic file and document management. All in the cloud, all integrated.

On the other hand, the forum of large taxpayers was inaugurated, an initiative of the current administration led by Mr. Mario Ramos, General Director of Taxation and supported by the IDB. This forum seeks that tax officials and major taxpayers (large taxpayers) discuss various issues to promote greater collaboration and mutual trust through good practices that include values such as transparency, legal certainty and cooperation. In other words, instead of showing their teeth and fighting for years in court, large taxpayers and the Tax Administration would have a regulated game where all cards are shown to avoid litigation and generate certainty, and of course, ensure that they pay what they owe, no more, no less.

On the other hand, the tax authorities would not only save control resources, but could also direct their cannons at those who do not collaborate, are not transparent and do not show their cards. This is known as cooperative compliance and is successfully applied in many OECD countries.

As Mario Ramos said at the opening of the Forum, "cooperative compliance is based on trust. The model has been successfully developed in more than 30 countries. We seek to increase trust and reduce litigation. Good for DGT, but especially for Costa Rica. I hope and trust that the officials of the Tax Administration will embrace the changes: first, an integrated computer system that will generate a dynamic of service for the taxpayer and that should improve our perception of this public service and on the other hand, a change of approach towards large taxpayers: the DGT should generate trust without losing the rigor but should abandon the approach that large taxpayers are the "big evaders". They, in turn, will have to open their tax strategies and implement control models or frameworks open to permanent scrutiny by the authorities to ensure that they pay what they should pay and that there are no hidden cards, thus avoiding costly audits and more expensive litigation.

Receipt acknowledged: The US financial services agency Moody's raised the long-term local and foreign currency sovereign credit rating for Costa Rica from B2 to B1, and changed the outlook from stable to positive. Russia announces its withdrawal from the Comprehensive Nuclear Test Ban Treaty and tests an intercontinental ballistic missile capable of traveling 8,000 km and carrying 10 nuclear warheads. The Indian community in Costa Rica celebrates the traditional Diwali festival. Yokasta Valle defeats Mexican boxer Anabel Ortiz in Cartago. Biden announces that Costa Rica will host the Summit of the Americas in 2025. Trump ahead of Biden in polls on voting intentions according to the New York Times.

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