Costa Rica Chamber of Commerce Seeks Injunction against Requirements to Share Information

Costa Rica's Chamber of Industry has reported it is seeking an injunction along with a legal review following a decision issued by the Directorate General of Taxation (DGT) that instructs large companies to provide information regarding their shareholders. The Costa Rica Chamber of Commerce is claiming that the measure in question, the Scheduled and Targeted Multifunctional Analysis Tool, exceeds the limits established by the Costa Rican constitution.

Issued in late July of last year, the resolution requires companies to deliver substantial amounts of information regarding shareholders via an analysis tool. An extension has been granted twice for the deadline for submitting such information.

At the heart of the issue, according to the Chamber of Commerce, is the fact that companies are being forced to provide private shareholder documentation without the benefit of a provision in law or court order. The Costa Rica Chamber of Commerce has also expressed concerns that the DGT has been granted the power to establish as well as collect fines without any type of legal support. As a result, taxpayers are left with little recourse.

There are also concerns regarding how this type of action could impact Costa Rica's business climate, the productivity of companies, and job creation abilities. While the Chamber has conceded the need for tax authorities to be able to request information from companies in order to enhance compliance with tax controls, requests for excessive information that have no legal basis is viewed as problematic.