Tax Condonation in Canton de Santa Cruz

August 24, 2021

1. What is the purpose of this law?

As a result of the pandemic, the financial sustainability of the province of Canton de Santa Cruz was affected, being the reason for the tax remission bill to allow the province to obtain economic income and thus increase municipal investment in the services it provides to the population.

2. Regulatory purpose

To condone taxpayers of municipal taxes for the payment of surcharges, interest, and fines owed to the Municipality for taxes, fees, services, real estate tax, and other municipal obligations.

3. What are the requirements to obtain tax remission?

The remission will be effective only if taxpayers pay the totality of the principal owed amount or agree with the Municipality on a payment arrangement to pay such principal amount within a maximum period of twelve months.

This will apply at the request of the interested party, according to the means and mechanisms made available by the Municipality of Santa Cruz.

4. Term

The Municipal Council Agreement shall define the term during the exercise condonation authorized by this law, but not exceeding one year, counted as of the enactment of this law. Differential moratoriums and/or condonations may not be established, nor different percentages are applied to different taxpayers.

5. Who qualify as debtors according to these regulations?

Those in the extrajudicial collection stage, before this benefit availing, must pay in full the fees of the external lawyer and the expert’s expenses incurred by the Municipality for their debts collection procedure with the procedural costs.

6. Are there any impediments?

It may not be authorized in cases where the Municipality has denounced or is facing a situation that may be denounced before the Public Prosecutor’s Office by considering as irregularities that may constitute tax offenses.

The head of the Tax Department and the Municipal Mayor will define whether the situation is reportable to the Public Prosecutor’s Office. 

Source: La Gaceta 23/08/21