Corporate tax bill bounced back to a legislative committee

As expected discontent with the proposed tax on corporations resulted Monday in the proposed law being sent back to a committee.

This is the estimated $316 tax on every active corporate entity in the country. Inactive corporations wold pay half that.

Some lawmakers have been complaining that the measure taxes small businesses the same amount as corporate giants. They will try to change the wording to assess more tax on larger companies.

This is the tax that President Laura Chinchilla and her administration is trying desperately to have passed. The
measure would have generated about $700 million in the first week of the new year had it been passed quickly. About half of the money would go toward supporting a new police school.

Other lawmakers oppose the six-month period in the law when property owners can remove the ownership from the corporation without paying a transfer tax. The idea is that persons who have homes and cars in a corporation can remove the property and then void the corporation to avoid paying the tax.

Many expats have homes and vehicles in corporate ownership.

The measure already has been passed by the Asamblea Legislativa. The second vote would have been final.

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