What happens if I do not file my income tax return on Wednesday?

Si usted no declara el miércoles, pasa a una base de datos de omisos, que le impediría por ejemplo, venderle al Estado

Written by

Francisco Villalobos

Published on

13/03/2023
Blog
Financial auditing, internal audit and risk consulting services

In two days the deadline to file the income tax return for the 2022 tax period will expire.

I share some important data, in case that a few days from now, the cash flow does not allow the payment, and you are thinking about whether to declare or not, to pay or not. They are different things and both omissions have different consequences. As everything in life, one must make decisions and for each decision you make, you decide a path.

The other, the road not taken, is only left for speculation and perhaps, at a drinks table, to waste time and verb constructing fantastic or possible scenarios: if one had played double zero instead of 47? If I had stayed with that girlfriend? If I had not quit that job? If I had won the scholarship, if I had bought that car? If I had paid more attention to that health issue? If I had paid my income tax in March! . I think this last one is the one that I would have repaired in less time, because I think, it is the one that has the simplest solutions. Let's see:

If you do not declare on Wednesday, you go to a database of defaulters, which would prevent you, for example, from selling to the State. Then, since you have not determined your taxes in the form to do it (Form), the Tax Administration could eventually determine ex officio what you should have declared based on data it has from your previous declarations. Before doing so, you may be required to file your return and if you do not do so within 10 business days, your establishment may be closed for 5 days. You would also be subject to a penalty for not filing the return on time of half of 462,200 colones, which is equivalent to one basic salary. That is, 231,100 colones.

If you declare, but do not pay, you will become part of a database but of defaulters, because you declared, but did not pay. What this means is that your self-determined debt (what you declared in the self-assessment form we call "declaration") now begins to generate interest, which the State must go to the market to borrow from a third party, the amounts that you should have paid. In addition, it will charge you a penalty for late payment. Also, the State may seize your bank accounts and charge you the costs of a collection process.

Now, if you declare but do not pay and can prove that you are "facing an economic-financial situation that temporarily prevents you from paying the tax debt within the legal term" as stated in article 189 of the Tax Procedure Regulations, you will have to prove such situation to request a payment facility, a payment arrangement as it is customary to say, which is nothing more than a concession that the law allows you to pay your debt in installments for a maximum term of 24 months.

Tributation, as it is colloquially called, is not a cheap financier. The current interest on amounts due is 11.59% per annum.

In short, life is full of decisions. And clearly, the tax system is designed so that our decision of not paying or not filing on time, has consequences. Like everything in life, a decision will have to be made and like any other decision one must be clear about the consequences of deciding one thing or the other prior to making the decision. There are a couple of days left to think this through.

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