Tuesday, 15 January 2019

Telefonica faces allegations of tax fraud in Costa Rica

By Chris Kelly, Total Telecom
Wednesday 09 January 19

The Costa Rican government claims that two of Telefonica's subsidiaries have violated the country's taxation laws

Costa Rican investigators have raided the offices of two Telefonica subsidiaries over allegations of tax fraud in the Central American nation.  Costa Rica's Justice Department is investigating the Spanish telecoms giant for tax fraud amounting to $2 million…

Costa Rican investigators have raided the offices of two Telefonica subsidiaries over allegations of tax fraud in the Central American nation. 

Costa Rica's Justice Department is investigating the Spanish telecoms giant for tax fraud amounting to $2 million, according to a report by news site Reuters

The Costa Rican government alleges that Telefonica violated the country's taxation laws when it created Tejisa.

“According to the investigation, the country lost over 1.25 billion colones ($2 million) in tax on profits in 2017,” Costa Rica's Public Prosecutor said in a statement to Reuters. 

On Tuesday, the Costa Rican authorities raided the offices of both Movistar and Tejisa to seize documentation for the forthcoming trial. 

Through its subsidiary Movistar, Telefonica is the second biggest provider of telecoms services in Costa Rica, with 1.42 million subscribers across the country, providing mobile, fixed line and TV services. 

Movistar will be among the first telcos to rollout 5G in Costa Rica, with nationwide rollout expected to begin in earnest in the second half of 2020. 

Telefonica has not yet commented on the allegations of tax evasion. 

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