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ax litigation is a legal process that occurs when disputes arise between taxpayers and tax authorities. These disputes can encompass issues like unpaid taxes, incorrect assessments, or disagreements over deductions. Ignoring tax disputes can lead to severe consequences, including fines, interest on unpaid taxes, legal actions, and even asset seizures. Therefore, it’s crucial to address tax disputes promptly.

Tax litigation can significantly impact you financially and legally. It’s essential to choose the right attorney with expertise in tax law and a strong track record when dealing with these matters. The duration of a tax litigation case varies, and penalties for tax evasion in Costa Rica can include fines, imprisonment, and requirements to pay outstanding taxes, along with interest and penalties.

Taxpayers in Costa Rica have the option to appeal decisions related to tax disputes, seeking resolution through administrative tax authorities and the Tax Court. In summary, understanding tax litigation and taking timely action is crucial to protect your financial interests and legal standing.