Jul 4, 2025
On June 9, 2025, the Constitutional Chamber of Costa Rica (Chamber IV) issued Judgment No. 2025-17051 (File No. 19-011237-0007-CO), which partially annulled Article 18 bis of the Code of Tax Norms and Procedures (CNPT). Specifically, the Court declared unconstitutional the fifth paragraph of said article, which conditioned the public disclosure of names and amounts owed on the debt being final before the administrative court and without pending judicial appeals. In practice, the annulled rule prevented a taxpayer from being included on the list of defaulters while contesting the debt through administrative litigation. With the annulment issued by Chamber IV, this restriction has disappeared: any debt determined by the Treasury may be published, even while the taxpayer is pursuing legal appeals. The ruling was approved by a majority (4 votes to 3) and has retroactive effect from its entry into force, as prescribed by law.
Legal context and regulatory change
Article 18 bis of the CNPT establishes key links between tax compliance and other procedures. It requires taxpayers to be up-to-date with their tax obligations to process municipal permits (patents), participate in public procurement processes, apply for exemptions or concessions, among others. It also mandates the Ministry of Finance to create and update a "list of delinquent taxpayers" (Article 18 bis, paragraph 3). This list was freely accessible only to certain public authorities responsible for verifying tax requirements in state procedures.
Until the challenged date, the fifth paragraph of that article prohibited the inclusion on the list of anyone who had filed administrative or judicial appeals against the debt. As the court explained, the annulled provision granted "excessive protection" that immediately prevented the disclosure of names and amounts while claims were pending. Following the declaration of unconstitutionality, the Ministry of Finance will no longer be able to deny access to the names and amounts on the grounds of pending appeals. The Attorney General's Office had stated that information on specific tax debts is not absolutely confidential and is in the public interest. Consequently, Article 115 of the CNPT (National Tax Code of the Basque Country), which mandates the publication of the names of tax debtors and amounts owed, as well as of those who fail to register or file tax returns, will apply.
In short, the ruling eliminates the procedural barrier that protected the confidentiality of defaulters in legal proceedings. According to experts, anyone can request information on a given taxpayer's tax arrears. Although the full text of the majority vote has not yet been published, this regulatory transformation has already been reported in national media.
Impact on companies and taxpayers
The ruling has generated concern in the business sector. According to the Chamber of Industries and the Chamber of Commerce, automatically placing a company on the list of defaulters (even with a pending claim) can cause "public ridicule" and serious reputational damage. As the unions point out, when a company appears on this list, it is immediately perceived as non-compliant with its tax obligations, which affects its image, operating capacity, and business relationships. In other words, corporate reputation can be seriously compromised by data that has not yet been definitively resolved. Furthermore, there is fear of confusion between "late payment" (a legal dispute) and "deliberate evasion," which could generate parallel lawsuits and distrust in the market.
In the area of public procurement, the measure also poses challenges. The CNPT explicitly links fiscal validity with the ability to participate in state tenders. Now, if a taxpayer is prematurely included on the list of defaulters, they will automatically lose their eligibility to contract with state entities until their situation is resolved. In practice, this means that a challenge process could paralyze a company's eligibility for public contracts, even before exhausting legal remedies. Therefore, companies must weigh the risk of being disqualified from contracting processes against defending their dispute with the Treasury.
Regarding financial credit, the disclosure of tax debts can be a negative factor in the risk assessment of banks and financing providers. If a company is publicly listed as a debtor, creditors and business partners may view it as a greater risk, which increases the cost or limits its access to loans. Although there is no specific national report, this public exposure is likely to influence the perception of a company's solvency. In any case, analysts warn that the 4-3 ruling, by allowing the disclosure of any specific debt, could even affect investor confidence and the general business climate.
Risks and practical recommendations
The elimination of the restriction creates several tax and corporate risks. These include:
Legal defenselessness: The taxpayer loses procedural protection. As the Chamber of Industries has indicated, to "remove from the list of defaulters, the amount claimed must be paid, even if the company legitimately disagrees." This can force companies to settle disputed debts to clear their name, even before a final judgment.
Reputational damage and pressure: When defaults are made public, companies may suffer unfair social and media pressure, especially the most vulnerable SMEs. The exposed tax information could affect the presumption of legality of transactions and even personal data rights.
Trade barriers: Being listed limits access to government contracts, indirectly penalizing the exercise of the right to litigate. It can also complicate relationships with suppliers, clients, and financial institutions due to the uncertainty it creates.
To mitigate these risks, businesses and taxpayers must act cautiously:
a) Monitor your tax processes and anticipate inclusion on the list. Any audits or tax adjustments should be closely monitored.
b) Document and expedite appeals: Submit responses and appeals in a timely manner, but also evaluate options such as guaranteeing payment or reaching agreements with the Treasury to avoid prolonged inclusion on the list.
c) Proactive communication: If you appear on the list, prepare clear messages for investors, clients, and the media, explaining that there is an ongoing tax dispute. Maintaining transparency can mitigate reputational impacts.
d) Legal and tax advice: consult specialized tax and legal advisors to explore available remedies. Although the ruling itself is final, there may be avenues for protection (e.g., clarification at the administrative office) or mediation strategies with the Treasury.
e) Regulatory update: closely monitor whether the legislature introduces changes or clarifications (e.g., through an authentic interpretation) and participate in opinion forums.
In conclusion, the ruling of the Fourth Chamber of the Supreme Court of June 2025 substantially modifies the rules of the tax game: it makes public the list of delinquent taxpayers regardless of pending procedures. This change will enhance tax transparency, but also increases risks for formal companies by temporarily unbalancing the right to tax defense and the confidentiality of information. Companies must redouble their tax compliance and risk management efforts. Reliable sources indicate the scope of the ruling (File No. 19-011237-0007-CO). As soon as the full version of the ruling is published in the Judicial Bulletin and La Gaceta (as ordered by the Fourth Chamber of the Supreme Court ...
Source: Information obtained from national legal and financial media, which review the ruling of the Fourth Chamber and the opinions of experts and business associations. The text of the current CNPT (Law 4755) and the resolution itself (vote 2025-17051) are available in the corresponding official records.