Avoiding tax

Kipling333

Bronze
Jan 12, 2010
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This subject is extremely important but of little interest to most readers here but was almost lost in the news of last Friday . The avoidance of paying tax that a person or entity is obliged to pay is not thought of harshly in the same way as it is in northern american countries, Canada, Australia and even the USA . It is endemic in most latin countries and of course in the DR and ,in my opinion, is a digusting way of throwing the burden of providing government revenue from the rich to the poor.
So I was very glad to see the article on Friday recommending better compliance of existing laws rather than a range of new tax laws.
I do not know how the country can change the policies of the rich to try to avoid tax but I do know the answer to better compliance is through government computer up grades and the employment of Government tax agents to check in great detail the affairs of those who appear rich but pay little tax. It is the gathering of intelligence by the taxation office from banks, real estate agents , property records and company reports in a linked way that must be rapidly introduced. I suppose we need the expertise of overseas tax compliance officers but, I for one, will be very happy, when I see investigations into a large number of individuals who try to escape the net.
 

Mauricio

Gold
Nov 18, 2002
5,607
7
38
Where's the article?

In DR I don't see the burden to be on the poor. I think it's the working middle class who's paying the burden, the poor don't make enough to pay income tax and often spend big part of their shopping in the informal sector where no taxes are paid either.

Personally I don't see it that bad to AVOID paying taxes in a country where you have to carry yourself the burden of security, electricity, education, healthcare etc.
 

Expat13

Silver
Jun 7, 2008
3,255
50
48
Where's the article?

In DR I don't see the burden to be on the poor. I think it's the working middle class who's paying the burden, the poor don't make enough to pay income tax and often spend big part of their shopping in the informal sector where no taxes are paid either.

Personally I don't see it that bad to AVOID paying taxes in a country where you have to carry yourself the burden of security, electricity, education, healthcare etc.

This is very true... Kipling remember the difference between entitlements and services we receive from our first world governments, forget the fact that the tax dollars in 3rd world countries are misappropriated. Now factor that when we(poor,middle,rich) buy products or services they are also higher than typical first world. 18%, sometimes 28%.
 

Kipling333

Bronze
Jan 12, 2010
2,528
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The reason that there has to be high taxes on goods and services is because Dominicans as well as overseas companies do not pay what they are obliged to pay. To say that there is an excuse not to pay because the government does not spend wisely is a cop out . We must pay what we are obliged to pay to assist those less fortunate than ourselves . Yes I do agree that the middle class have few ways of avoiding tax and so pay their fair share but if the rich paid , the taxes on food and clothing could be reduced ..these taxes are regressive and hurt the poor more.
 
Aug 6, 2006
8,775
12
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I observe that the poor in Barahona do not pay much in taxes other than the sales tax on items not needed for survival.
In return, they get rather sporadic delivery of water and electricity, for which they pay nothing.

In Barrio Palmerito the water is turned on from 8 AM to noon, electricity usually comes on around 8PM and shuts off before 6 AM. The times vary. Water is often shut off for up to four days,

People too poor to have a tank on the roof or an inversor pay more for everything, as food is discounted when you buy over RD$2000 at the supermercado, but without a refrigerator, there is a limit to what one can keep fresh.
 

Timotero

Bronze
Feb 25, 2011
689
29
48
Where's the article?

In DR I don't see the burden to be on the poor. I think it's the working middle class who's paying the burden, the poor don't make enough to pay income tax and often spend big part of their shopping in the informal sector where no taxes are paid either.

Personally I don't see it that bad to AVOID paying taxes in a country where you have to carry yourself the burden of security, electricity, education, healthcare etc.

Taxes are one of the prices we pay for a free and just society. In general, the more equitable and compliant the tax system of a country, the less disparity between classes and the greater opportunity for upward mobility.
 

Derfish

Gold
Jan 7, 2016
4,441
2
0
I observe that the poor in Barahona do not pay much in taxes other than the sales tax on items not needed for survival.
In return, they get rather sporadic delivery of water and electricity, for which they pay nothing.

In Barrio Palmerito the water is turned on from 8 AM to noon, electricity usually comes on around 8PM and shuts off before 6 AM. The times vary. Water is often shut off for up to four days,

People too poor to have a tank on the roof or an inversor pay more for everything, as food is discounted when you buy over RD$2000 at the supermercado, but without a refrigerator, there is a limit to what one can keep fresh.
How does one apply for a discount on food when the register rings past 2000 pesos?
 

ju10prd

On Vacation!
Nov 19, 2014
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Accountkiller
It appears to me that the use of the 'comprobante fiscal' to set off against ones taxes through purchases of personal items is a huge 'give away'. The poor certainly aren't getting this tax break.

It always amazes me that at supermarkets, and indeed everywhere, one is asked for your 'comprobante fiscal' and customers doing their weekly domestic shopping are clearly using it to get a tax break.

It should be limited to business expenses surely.
 

AlterEgo

Administrator
Staff member
Jan 9, 2009
23,097
6,247
113
South Coast
It appears to me that the use of the 'comprobante fiscal' to set off against ones taxes through purchases of personal items is a huge 'give away'. The poor certainly aren't getting this tax break.

It always amazes me that at supermarkets, and indeed everywhere, one is asked for your 'comprobante fiscal' and customers doing their weekly domestic shopping are clearly using it to get a tax break.

It should be limited to business expenses surely.

I'm sure it is limited to business expenses. My in-laws own a business in SD, and anything purchased for it is included. That may also include food and drinks served in their showroom to customers and/or employees. And remember that supermarkets like Jumbo, LaSirena, etc., also sell non food items that a business might use, so it makes sense for the cashier to ask each person. I know that when we had our business, we always separated the items that were sales tax exempt into a separate order at places like Sam's Club - hopefully Dominican business owners do the same.
 

Derfish

Gold
Jan 7, 2016
4,441
2
0
It appears to me that the use of the 'comprobante fiscal' to set off against ones taxes through purchases of personal items is a huge 'give away'. The poor certainly aren't getting this tax break.

It always amazes me that at supermarkets, and indeed everywhere, one is asked for your 'comprobante fiscal' and customers doing their weekly domestic shopping are clearly using it to get a tax break.

It should be limited to business expenses surely.
Could someone perhaps explain what a comprobante fiscal is? I have been asked if I want one and just say I do not know what it is.
 

Mauricio

Gold
Nov 18, 2002
5,607
7
38
Could someone perhaps explain what a comprobante fiscal is? I have been asked if I want one and just say I do not know what it is.

Comprobante fiscal is an invoice viable for asking back the itbis you pay. You give your companies fiscal number and it gets registered as a sale to your company. Tax department can cross information between your company and the suppliers.
 

Mauricio

Gold
Nov 18, 2002
5,607
7
38
Don't know about here, but the USA's tax forms say right on them that avoiding taxes is your right and duty, but evading them is what is not acceptable.
Der Fish

Exactly that. Even tough here is feel tempted to also evade taxes, that wouldn't be the right thing to do.
 

AlterEgo

Administrator
Staff member
Jan 9, 2009
23,097
6,247
113
South Coast
Could someone perhaps explain what a comprobante fiscal is? I have been asked if I want one and just say I do not know what it is.

It is a receipt linked to a particular person or business - when they pay their tax bill to the government [monthly I believe], they can deduct the amounts of tax they paid for business related purchases.
 

bob saunders

Platinum
Jan 1, 2002
32,504
5,932
113
dr1.com
It appears to me that the use of the 'comprobante fiscal' to set off against ones taxes through purchases of personal items is a huge 'give away'. The poor certainly aren't getting this tax break.

It always amazes me that at supermarkets, and indeed everywhere, one is asked for your 'comprobante fiscal' and customers doing their weekly domestic shopping are clearly using it to get a tax break.

It should be limited to business expenses surely.
...
I don't disagree but with an income tax rate of 25% when most are paying nothing it's also reasonable to have a few deductions. We pay in excess of 100k for the pension as well, the medical for the employees, infotep tax, tax on cheques, tax of interest at the banks, tax on online deposits
 

jinty05

Bronze
Feb 11, 2005
925
38
48
There is no kind of dishonesty into which otherwise good people more easily and frequently fall than that of defrauding the government.

Benjamin Franklin


This subject is extremely important but of little interest to most readers here but was almost lost in the news of last Friday . The avoidance of paying tax that a person or entity is obliged to pay is not thought of harshly in the same way as it is in northern american countries, Canada, Australia and even the USA . It is endemic in most latin countries and of course in the DR and ,in my opinion, is a digusting way of throwing the burden of providing government revenue from the rich to the poor.
So I was very glad to see the article on Friday recommending better compliance of existing laws rather than a range of new tax laws.
I do not know how the country can change the policies of the rich to try to avoid tax but I do know the answer to better compliance is through government computer up grades and the employment of Government tax agents to check in great detail the affairs of those who appear rich but pay little tax. It is the gathering of intelligence by the taxation office from banks, real estate agents , property records and company reports in a linked way that must be rapidly introduced. I suppose we need the expertise of overseas tax compliance officers but, I for one, will be very happy, when I see investigations into a large number of individuals who try to escape the net.
 

reilleyp

Well-known member
Dec 12, 2006
1,190
663
113
There is no kind of dishonesty into which otherwise good people more easily and frequently fall than that of defrauding the government.

Benjamin Franklin

The only kind of dishonesty more prevalent is governments fraudulently spending the money of otherwise good people.

Reilleyp, 2016
 

ctrob

Silver
Nov 9, 2006
5,591
781
113
Comprobante fiscal is an invoice viable for asking back the itbis you pay. You give your companies fiscal number and it gets registered as a sale to your company. Tax department can cross information between your company and the suppliers.

Would real estate owned under a corporation allow one to use this rule?