Sr. Guzman,
Our Condo complex was registered in 2006-2007 as a Hotel by the Developpers. The units in this complexe were sold to us as condos, and we each received our Titles. During all the legal transactions with the agents and the lawyers there was never a mention that we were registered as a Hotel.
Now the Government is saying that because we are a hotel, all condo fees are revenues and we need to pay Income Tax on it.
We did change the registration in February 2011 to a Condo Association, however the Government is claiming penalties for 2008, 2009, 2010.
My question to you is this, the complexe was set up to allow for a Rental Pool for the owners who wanted to participate, it was not mandatory. Out of 39 units only 14 signed up for the Rental Pool and they essentially have been running a business on our premisses since 2007.
Now that we are facing these fines, the Developpers are telling us that the registration as a Hotel was made because they had no other alternatives back then, that they could not file as a Condominium as this option was not available, and that they had to file as a Hotel and therefore that all the owners are liable for the penalty charges.
I question this as I am certain that the only reason they had to register as a Hotel is because they wanted to run the Rental Pool Business. If this is the case I say that only those members of the Rental Pool should be liable for the penalty and not the other owners who have not participated in the business.
I believe they are lying to us, there are Condominiums all over the island, large ones in Santo Dominingo and I am certain they are not registered as Hotels. The Condominium Law has been in effect for a long time therefore it must mean that registering as a condo was an option in 2006-2007.
I would appreciate your comments on this issue.
Our Condo complex was registered in 2006-2007 as a Hotel by the Developpers. The units in this complexe were sold to us as condos, and we each received our Titles. During all the legal transactions with the agents and the lawyers there was never a mention that we were registered as a Hotel.
Now the Government is saying that because we are a hotel, all condo fees are revenues and we need to pay Income Tax on it.
We did change the registration in February 2011 to a Condo Association, however the Government is claiming penalties for 2008, 2009, 2010.
My question to you is this, the complexe was set up to allow for a Rental Pool for the owners who wanted to participate, it was not mandatory. Out of 39 units only 14 signed up for the Rental Pool and they essentially have been running a business on our premisses since 2007.
Now that we are facing these fines, the Developpers are telling us that the registration as a Hotel was made because they had no other alternatives back then, that they could not file as a Condominium as this option was not available, and that they had to file as a Hotel and therefore that all the owners are liable for the penalty charges.
I question this as I am certain that the only reason they had to register as a Hotel is because they wanted to run the Rental Pool Business. If this is the case I say that only those members of the Rental Pool should be liable for the penalty and not the other owners who have not participated in the business.
I believe they are lying to us, there are Condominiums all over the island, large ones in Santo Dominingo and I am certain they are not registered as Hotels. The Condominium Law has been in effect for a long time therefore it must mean that registering as a condo was an option in 2006-2007.
I would appreciate your comments on this issue.