Costa Rican bill would allow tax authority to seize assets without court order

Tuesday, 19 May 2015

A draft law proposed by Costa Rica’s government would allow the country’s tax authority to seize the property and bank accounts of taxpayers who have not paid their taxes without the need for a court order or judicial review.

The Draft Law on the Improvement of the Fight against Tax Fraud (Sp: Proyecto de Ley para Mejorar la Lucha contra el Fraude Fiscal) was announced by the government as a means to tackle tax evasion and the country’s fiscal deficit.

Concerns have been raised about the scope of the draft law which could, according to reports, enable the tax authority, the Directorate for Direct Taxation (Sp: Dirección de Tributación Directa) to start seizing property after giving as little notice as an email to taxpayers considered delinquent.

The Technical Services Department of the Legislative Assembly has raised concerns that the provisions in the draft law could affect property rights and the privacy of individuals.





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