The Agreement will make it easier for Ecuador to conduct investigations and collect taxes.

Ecuador's Foreign Affairs and Human Mobility Ministry issued the Agreement for Exchange of Tax Information between Ecuador and Costa Rica, which requires the parties to exchange information that is relevant for the determination, assessment, collection and execution of tax claims or for the investigation or prosecution of tax lawsuits.

The exchange of information will be carried out regardless of whether the individual or enterprise to which the information relates is a resident or national of the contracting parties.

For Costa Rica, the exchange of information applies to information regarding the income tax and other taxes collected by Costa Rica's tax authorities. For Ecuador, the exchange of information applies to information regarding income taxes, inheritance and donation tax, and other taxes collected by Ecuador's IRS.

Request for information exchange

To request information, the competent authority of the requesting party will provide the following information, which will be treated as confidential by the requested party:

— The identity of the person under investigation
— A description of the requested information stating its nature and the way in which the requesting party want to receive the information
— The tax purpose for which the information is requested
— The reasons the requested information may be in the possession or control of a person within the jurisdiction of the requested party
— The name and address of any person who is believed to be in possession of the requested information
— A sworn statement establishing that the request accords with the requesting party's legislation and the Agreement, and that the requesting party have used all possible ways in their own territory to obtain the information

If the information available in the requested party's tax records is not enough to comply with the request, the requested party will have to use all possible methods to provide the information to the requesting party. The requested information may include books, documents, records or tangible assets that may be relevant or essential to the investigation. If the books, documents, records or tangible assets are under the control of another person, the requested party may interrogate or force the person to turn over the information.

Receipt, termination and confidentiality

The requested party should confirm in writing that it received the request from the competent authority of the requesting party and should notify the requesting party if there is any missing information within 30 days of receiving the request. The requested party should notify the requesting party if it is unable to obtain and provide the information within 70 days of receiving the request.

The competent authority of the requested party may refuse to provide the information if the request does not accord with the Agreement, or if the competent authority is requested to apply or enforce a legal provision that discriminates against the requested party's residents or nationals.

When the competent authority of any of the Contracting Parties determines that the information received is likely to be used by a third country with which an information exchange agreement is signed, this party may share the information with the prior consent of the party providing the information.

This Agreement will enter into force 30 days after the receipt of the last notification. Any contracting party may terminate this Agreement by written notification to the other party. In this case, the Agreement will no longer apply on the first day of the month following the end of the six-month period from the notice of termination.

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