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?
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?