Lawmakers at odds over a proposal for small business tax exemption

Lawmakers are engaged in a dispute as to whether small business should be exempt from the annual corporate tax.

That proposal was placed on the table at a legislative committee by the Partido Unidad Social Cristiana. The tax itself was ruled unconstitutional in January 2015 by the Sala IV constitutional court, but magistrates inexplicably ruled that despite the deficiency in the law, corporations had to pay the money anyway.

The  Partido Unidad Social Cristiana, and Rosibel Ramos of that party outraged some other lawmakers when she declared a recess of the Comisión de Hacendarios before action could be taken on a tax fraud bill Wednesday. She is the chairwoman.

The corporate tax bill has been rewritten and is back in the same committee.

The members of  Frente Amplio launched their criticism over the taxes on  sociedades anónimas when a motion was made to put the tax break in the current bill.

About 55 percent of the corporations have not paid the 2015 tax because their managements have been waiting to see what the legislature would do. Frente Amplio called the motion rewarding tax evasion.

Under the former and proposed law corporations that register as small businesses either do not pay tax or they pay a reduced sum.

Frente Amplio said that tax exemption would cost the  Ministerio de Seguridad Pública and the Judicial Investigating Organization 180 trillion colons or an astonishing $330 million.

The law enforcement agencies are the principal beneficiaries of the tax.

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