In an effort to promote transparency and fiduciary duty in Costa Rica’s fiscal process, the tax records of delinquent individuals and business entities could soon be in the public record. Such is the essence of a new legislative proposal introduced by Jose Maria Villalta of political party Frente Amplio, a faction generally aligned with leftist ideology.

The proposal was introduced on April 24^th, and it was considered worthy of review and debate by all parties at the National Assembly, as well as by the Executive Branch. The proposal seeks to amend the current Law for Strengthening the Revenue Collection Process; it would specifically amend Article 115 of the Procedural Code of that law, which would approximately read as follows:

“[…] information containing the names of individuals and business entities that have unpaid taxes and debts owed to the Treasury, as well as the related amounts. The Revenue Administration should herewith be allowed to publish lists of those who have debts with the Treasury and the amounts thereof, including the names of those who have not declared income while engaged in commercial activity without having registered as taxpayers […]”

Legislator Villalta indicated that this amendment would be a great step in the right direction for Costa Rica, since it would greatly reduce the possibility that tax dodgers remaining in the shadows, unpunished.

“This amendment will contribute to greater transparency in fiscal matters, and to the fight against corruption”, added Villalta.

As a way of explaining how the amendment could further benefit the nation, Mr. Villalta pointed out that the shaming of employers and others who are delinquent with their payments to La Caja has proven successful in Costa Rica.

The legislative proposal presented by Mr. Villalta will have to be checked against the privacy framework allowed by our Constitution; however, existing laws provide for the prosecution of those who divulge tax information. This is the reason behind the planned prosecution of a dozen whistleblowers who are also Treasury employees. These unnamed government workers are alleged to have provided the media with tax information leading to the resignation of various public officials and an investigation into possible fraud, waste and abuse schemes.

The Costa Rica Star previously reported on Mr. Villalta’s decision to refuse his salary increase as a legislator.