Tax agents will have local data to catch cheats and evaders

The nation’s tax agency has entered into an agreement with the country’s 84 municipalities to swap information that may help improve tax collection and catch deadbeats.

By having access to the municipal data bases, the Dirección General de Tributación can spot businesses that are not paying sales tax or income tax or who lack certain permits. Municipalities, by accessing the Tributación data bases, can find businesses and individuals who are paying national-level taxes but may not have local business licenses or permits.

That summary comes from a press release provided by Tributación.

Tax experts are in the process of evaluating the data bases of
the various municipalities so they can be manipulated easily by the central government.

The information exchange project has the support of the Ministerio de Descentralización y Desarrollo Local.

Although the agencies did not mention one aspect in detail, the municipal data will be a fertile hunting ground for those homeowners who are not paying the luxury tax on their upscale dwellings. Municipal governments maintain the local property records and building permits and collect taxes and fees, so they have an updated information of who lives where.

Tributación said that this local information would be useful in locating taxpayers who have ducked out on payments.

Th exchange agreement went into effect Thursday.

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