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Tax, Court and Registry Workers Improving

by Garland M Baker on August 16, 2024

Years later, they are getting act together

What do entropy and the Big Bang Theory have to do with the Registro Nacional, Costa Rica’s public registry center, Tributacion Directa, the country’s tax authority and other public institutions in Costa Rica?

Entropy is a measure of the disorder or randomness in a closed system, and The Big Bang Theory is the dominant scientific theory about the origin of the universe. According to the big bang theory, the universe came into existence from a cosmic explosion that hurled matter in all directions.

In the simplest of terms, some theorizers believe order comes from disorder, as with the universe.

This may also be true at the Registro Nacional, and in other government offices. Order may be finally coming from all the disorder caused by the introduction of computers into the country.

The registry’s computerization, in theory, is 10 years old. However, no real progress was noticeable until the last six years, after the new registry law went into effect Nov. 22, 1998.

Now it seems that this year, more than any in the past, the people looking at their computers in the registry are actually very confident as to their use. They can provide information quickly and efficiently and direct people to other departments where the same is true.

Numerous interviews with registry workers this past week revealed that the real property information listed on the Internet Web site is very close to the actual information on the internal registry computers. It is important to note, not exactly the same, but very close.

This is not true for mercantile information, held in a separate department and thus a separate computer system. However, everyone at the registry is working very hard towards the same objective. The mercantile system manages incorporations and powers of attorney, to name two of the most important functions. The information on the Internet is very different from what is actually on the internal computers. Information on the Internet may show a company registered when, in fact, it is not. The only way to be absolutely sure what a company’s constitution states is to make a complete microfilm of all the presentations to the National Registry. That requires an in-person visit.

The organization, from disorganization, is also apparent at Tributacion Directa. This year it is clear that workers there know how to use the information coming out of their computers and are acting on it. They are sending agents to local business operators demanding payment of long-past-due taxes.

Other examples of order from havoc is the San José court system in Circuit II located in Goicoechea, Guadalupe, where every case file is now computerized and available on the Internet via the Web site.

Why are these advances important?

Over the past months of 2004, property values, once incorrect, are now being systematically updated at the Registro Nacional to the values stated in old legal instruments and/or being verified through the tax computers as to their real values. However, these values, in some cases, are over stated, and it is important to correct any errors now and not wait until the day one decides to sell a property.

Corporations need to verify the accuracy of the information at the registry, so old information should be corrected or brought up-to-date. Someone long gone from a company may be listed as having a directorship position or worse — be listed as having a full power of attorney, with the ability to transfer any assets, when the person no longer is involved.

Tax files should be checked at Tributacion Directa to be sure no past due taxes are owed before the agents show up at the office.

All this computerization has caused another computer world problem. If it is on the computer, it must be true, and to convince some public employee otherwise is impossible.

Expats will find it better to act in advance and proactively fix any information that needs fixing. They should determine what assets and companies they have listed in Costa Rica and check the information at the Registro Nacional and Tributacion Directa as soon as possible. They should know who owns their property and, if property is held in a company, they should know exactly who are the directors and what powers of attorney may have been signed and registered.

Expats also should know what they owe the tax people and make sure it is paid. If someone knows there is a tax claim pending, but he or she has not heard about the debt for some years, a status check is necessary.

Once Costa Rica has everything in order and the systems run smoothly, expats can hope that it stays that way. But the theory about the universe suggests it will explode again and revert back to confusion.

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