The CCSS cannot make retroactive charges to self-employed workers without a technical basis
The First Chamber dismissed the appeal lodged by the Costa Rican Social Security Fund (CCSS), thereby upholding a ruling by the Court which limits the possibility of making retroactive claims against self-employed workers based solely on discrepancies between the contributions reported and income tax returns.
Although the ruling did not address the substantive arguments put forward by the Social Security Fund, it consolidates a restrictive interpretation of the institution’s audit powers in relation to periods already declared and settled by self-employed workers.
A key aspect of the ruling is the recognition that social security contributions for self-employed workers do not function as a tax calculated automatically on actual income. The system is based on a ‘reference income’ model determined by the CCSS Board of Directors on the basis of actuarial studies.
This means that tax returns may provide an indication of a taxpayer’s income, but are not sufficient on their own to justify additional charges without a technical analysis linking that data to the defined actuarial parameters.
Furthermore, the Court’s judgment, which is now final, stated that once payments have been accepted and processed by the Administration, new charges cannot be imposed retrospectively without resorting to extraordinary procedures (such as claims of unfairness or administrative nullity), which are subject to specific time limits and formalities.
Practical impact: This ruling benefits self-employed professionals, consultants and service providers who have faced retroactive charges from the CCSS. The ruling will influence future institutional audit strategies.
In this regard, see: https://www.nacion.com/blogs/por-tanto/sentencia-impide-a-ccss-hacer-cobros-retroactivos/X2BDIYX345HQVGNWM4JFDJL34E/story/ - https://www.nacion.com/el-pais/magistrados-confirman-freno-a-cobros-retroactivos/6QLCAGJMYFDDTGCO5AX5DXD54I/story/