The court ruling states that tax should only be applied to vehicles used for transport and transfer of persons or goods (goods, furniture, etc..) and not for machinery used in construction.
The statement from the Constitutional Court adds, "In order to avoid serious damages to the Treasury, the declaration of unconstitutionality has no retroactive effect for those who have paid the tax during the term in which the rules declared unconstitutional were in effect, so that in such cases the rules take effect from the date of judgment", reported Nacion.com
The director of the Chamber of Construction, Randal Murillo said that the ruling was satisfactory for the construction sector.
A declaration of unconstitutionality has been given to the section of the tax code that allowed the Treasury to demand payment of penalties and interest allegedly owed on taxes before the right to a defense can be exercised.
The slowness and inefficiency with which the Taxation department processes tax disputes, sometimes involving decades before there is a resolution, led to the outlandish idea on the part of lawmakers of putting the cart before the horse.In order to solve the problem of stubborn evasions where people take advantage of the inefficiency of the Taxation department, a decision was made to take away from companies the right to contest the results of tax audits, forcing the taxpayer to pay the amounts ordered by these audits, within in a deadline of one month, in order to be able to initiate formal questioning of those results.Now, the Supreme Court of Costa Rica has taken away that power from the Taxation department, declaring it unconstitutional.
An appeal by the private sector has been rejected and the Treasury will be able to require large taxpayers to be included in the AMPO system which contains information deemed sensitive.
From a statement issued by the Ministry of Finance:
The Ministry of Justice has finally decided in favor of the Tax Administration, in the process that the Chamber of Food Industry and several coadjuvants filed against the Scheduled Analysis Multifunctional and Target tool (AMPO).