LAY 183-07 Amnistia Fiscal = More Taxes

pedrodominicus

New member
Dec 2, 2003
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This law appears to be a mafia style tactic to demand more taxes or else!!

How Rentas Internas are applying the law is :

If your 2006 year end percentage profits are less than the average of other companies in your sector (tourism, industry,ect) you have to pay tax on the percentage difference.

I have seen examples of small companies receiving demands in the millions of peso. If you contest this amount in any way, you are likely to get a visit from DGII who will audit your business over the last 3 year period.

Any comments? Anybody else had experience of this law?
 

Dolores1

DR1
May 3, 2000
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I heard of the case of one company that was due to pay RD$500 million in taxes, and the law reduced the payment to RD$50 million. Probably they had good tax counsel. Coming to think of it, is quite unfair to companies that did pay their taxes correctly. But then in the DR you have to go with the flow.

Tax experts are up to their necks assisting their clients. The deadline was 6 September, and then the government extended it to 26 September.

The DGII said that within the early deadline, nine thousand companies had applied.

We applied it at dr1 and ended up paying about what we would have paid anyway, with the advantage we come away with a clean start for the new systems in 2007. But we are a very small company.

But from what you tell us, it can be quite a "gancho" for some companies.

Would be interesting to hear of other experiences.
 

Fabio J. Guzman

DR1 Expert
Jan 1, 2002
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It's not that Internal Revenue is applying the law in a certain way, it is the law itseIf that provides that the persons wishing to get amnesty should pay the average paid by other companies in their sector. The rates were published beforehand so every applicant had the opportunity to calculate how much they would owe BEFORE applying for amnesty.

There is no legal obligation to apply. If something went wrong, it's probable that the company did not obtain competent tax advice before applying.
 

pedrodominicus

New member
Dec 2, 2003
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Using the average as the bench mark is fine if you are performing above average but for companies below average, for what ever reason, (under reporting, bad year), you’d tarred with the same brush, which means you have to pay the difference to get the so called amnesty.

No matter how above board you run your company, you’re not likely to expose yourself to a three year audit, therefore you pay up. If this isn’t extortion what is?