The president of the Honduran Council of Private Enterprise (COHEP), Aline Flores, has called for the publication of the names of large companies that are allegedly evading their tax obligations. "We will not allow 34 companies to stain the name of more than 620 companies who are major contributors", said Flores.
In a statement from the Executive and Revenue Department (DEI in Spanish) the head of the Executive and Revenue Department (DEI), Enrique Castellón, announced that in the next few days he will meet with the directors of COHEP to discuss the possibility of publishing the name of these companies.
"There are some legal limitations, expressed by our legal department, but I agree in principal, if the law allows us to do so, we will convene a meeting with the Cohep to seek agreement", he explained. "But of course, the Law on Income Tax in Article 39 says that it is strictly forbidden in any way disclose the contents of the taxpayer’s statements", said the official.
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Businesses complain that the new law will give unlimited power to tax authorities to seize companies's information.
Armando Urtecho, director of the Honduran National Business Council (Cohep in Spanish), added that, "we are against too much power being given to the tax authority (DEI in Spanish) with less capacity remaining with judges to decide what is appropriate," reports Elheraldo.hn.
The Honduran Council of Private Enterprise is warning about a potential loss of competitiveness for companies investing in the country.
Through its president, Aline Flores, the COHEP (Honduran Council of Private Enterprise) is opposing a new tax package sent to Congress by the government.
Defaulters of the Honduran Tax system have been blocked from gaining access to the National Tax Registry (RTN in Spanish) and the Automated System for Customs Revenue in Honduras (SARAH in Spanish).
An article in Laribuna.hn reports that "The Executive of the Revenue Department (DEI in Spanish) this week launched the blocking of the National Tax Registry (RTN) to a hundred small, medium and large taxpayers who are tax defaulters, so that they can not carry out any commercial operations whatsoever. "
With the publication in the official daily newspaper, a 1% increase on income tax (ISR) comes into force.
The amendment to the income tax law adopted by Congress applies only to companies with revenues in excess of $529 thousand (10 million lempiras). The increase will be applicable for the fiscal year beginning in 2011.