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Costa Rica ratifies agreement to automatically share your financial information

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3 June 2015 - Signing Ceremony of the Declaration on joining the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (MCAA). (Photo: OECD/Matthieu de Martignac)

3 June 2015 – Signing Ceremony of the Declaration on joining the Multilateral Competent Authority Agreement
on Automatic Exchange of Financial Account Information (MCAA).
(Photo: OECD/Matthieu de Martignac)

June 5th, 2015 (InsideCostaRica.com) Costa Rica and six other countries are the latest to join an international agreement to automatically exchange individuals’ and companies’ financial information.

 

Costa Rica, along with Australia, Canada, Chile, India, Indonesia and New Zealand have become the latest countries to join the Organisation for Economic Cooperation and Development (OECD)’s Multilateral Competent Authority Agreement (MCAA), bringing the total number of jurisdictions to 61, the OECD announced in a Thursday press release.

 

The Agreement implements the Standard for Automatic Exchange of Financial Information in Tax Matters, developed by the OECD and G20 countries and presented in 2014.

 

The Standard provides for annual automatic exchange between governments of financial account information, including balances, interest, dividends and sales proceeds from financial assets. It covers accounts held by individuals and entities, including trusts and foundations.

 

The United States was one of the first countries to implement the measures, and will automatically receive financial details on all U.S. citizens with financial accounts or assets in Costa Rica or other participating jurisdictions.

 

The first automatic exchange of information is expected to occur in 2017, which would cover data and transactions for the year 2016.

 

OECD Secretary-General Angel Gurría welcomed the expansion of signatories of the MCAA, saying, “The world is quickly becoming a much smaller place, both for tax evaders and tax administrations. We expect a truly significant amount of additional financial information to circulate among authorities in the coming years, resulting in less tax evasion, greater tax revenues and a fairer tax system for honest taxpayers.”

 

 

 

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  • Yeims

    “The problem with Socialism is that you eventually run out of other people’s money.” Margaret Thatcher

    • Mike Shannon

      Costa Rica is a democracy, with ‘some’ social programs, just like every other civilized democracy.

      • mhogan

        Costa Rica is mired in social programs, many of which go unnoticed by the public. How many people know that “low” consumers of electricity pay NO sales tax on their consumption or that the rate is VERY progressive for everyone else. People who receive salary off the books pay no income tax but are often subsidized. How about the “gringo” tax where locals engage in 3-tier pricing (tourist rate/gringo rate/Tico rate) — a private social program enjoyed by Ticos. When you have a bureaucracy that is wheels within wheels, tax money gets shifted around for many social programs — of course, after the bureaucratic elites take theirs off the top. Forget that a government job is a “social” program as is. Any time one member of society receives while taken from another is a socialist concept.

  • Ben

    There should be a vote on this type of issue. I guess that means that people will start to put lots of cash under there beds or in a safe. Nobody trust goverment. The goverment is now making rules that are against the people. Does that mean Farmers will have to give bills at the markets.

    • Ken Morris

      Richard has it right. This was foisted upon CR by the US, where nobody has a vote either.

  • richard schlinder

    Costa Rica was blackmailed into this thanks to the U.S. and the long arm of the I.R.S. There is a bigger threat of your account being hacked by the U.S. then any other country..No Ben,This is for ExPats.U.S. wants to know every dollar you earn and how much you spend.
    This is not the end of it. There is a much larger event coming down the road.Read everything you can find on U.S. Digital Currency.

    • Ginette Girard

      You are one person who gets it

      • richard schlinder

        Thank you for the reply Ginette.I follow international economies
        very closely.Let me tell you a little history. About six years ago,the federal government was looking into Bitcoins.They were not happy about this product. They put five government agencies on investigating Bitcoins.A total of 2000 D.C. lawyers worked on the project.Two questions:1.does the U.S. have any laws to prohibit Americans from buying Bitcoins and 2.can we come up with a law that will prohibit them from buying them?The answer was no and no.But one guy in the crowd said,why don’t we go digital with U.S.currency?This was a nutty idea but after thinking about it,more people starting formulating a plan to do just that.They found that they were already set up to a great extent already. Wire transfers,automatic deposits from payroll checks to social security and much more. The credit card system has long been in use and people are used to them.To buy things we just swipe our card or our phone and bam,we just paid for that bouquet of flowers. They called in the bankers to see how this program could be applied and as you know by now,they said it would be no problem at all.

        Bottom line!There will be no more cash. When you buy tortillas shells at your local Pulperia,you will have to swipe your card,no more cash.Money will be deposited in your account the same way,digital to digital.The Gov. will know every dollar you spend and every dollar earned.Please read anything on U.S.digital currency.Or federal government digital currency.
        Oh yea. They won’t have to bother with that pesky “In God WE Trust” crap any more. No one knows when this will start so just keep watching. Thanks again.

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