Business chamber seeks injunction against requirement to provide shareholder information

April 14^th, 2015 (InsideCostaRica.com) Costa Rica’s Chamber of Industry (CICR) is seeking an injunction and legal review against a decision by the Directorate General of Taxation (DGT) that forces large companies to provide information on their shareholders to tax authorities.

In a press release issued last week, CICR said that the measure, known as the Scheduled and Targeted Multifunctional Analysis Tool (AMPO) “undermines the concept of a corporation and transgresses the limits established by our Constitution.”

The resolution, dated July 24^th, 2014 requires companies to deliver larges amounts of information about its shareholders through a so-called “analysis tool.”

The deadline for submitting the information has been extended twice and is currently set for April 30^th.

“With this resolution [AMPO], the DGT requires major contributors to deliver [shareholders’] private documentation without an order of court or provision in law,” the chamber’s president, Enrique Egloff, said.  “In addition, the DGT is being granted the power to establish and collect fines without legal backing, leaving the taxpayer with no ability to defend themselves.”

“This type of action also affects the business climate in the country, job creation and companies’ productivity,” Egloff said.

Egloff said that the chamber agrees with the need for tax authorities to request information from businesses to improve tax controls and compliance, but does not approve of requests for “unnecessary information” or requests that have no “legal basis.”

The chamber said it is seeking the injunction due to the “serious damage this requirement could cause businesses.”