Results 1 to 4 of 4
  1. #1
    Newbie
    Join Date
    Jun 2006
    Posts
    9
    Post Thanks / Like

    Default Verizon Dominicana - Capital Gains

    Interesting article on US Congressmen expressing their disatisfaction with the DR trying to collect capital gain taxes from the Verizon sale.

    El Nacional, la voz de todos

    As I'm sure we have IB and M&A guys here, I'm interested on your take on this. Should the DR stand firm (we're talking about USD 500 million) and collect capital gain taxes?

    Thanks.

  2. #2
    Silver
    Join Date
    Apr 2004
    Posts
    4,660
    Post Thanks / Like

    Thumbs down I'm confused now

    I thought that this had been setteled via the Tax agreement between the DR and Canada, same for FalconBridge. Both were owned, and sold by Canadian incorporated companies. INDOTEL at one time prior to the tax argument from renta internal had agreed to the sale.

  3. #3
    Bronze
    Join Date
    Mar 2002
    Posts
    1,140
    Post Thanks / Like

    Cool well, here's the thing...

    Quote Originally Posted by DR_Tolete View Post
    Interesting article on US Congressmen expressing their disatisfaction with the DR trying to collect capital gain taxes from the Verizon sale.

    El Nacional, la voz de todos

    As I'm sure we have IB and M&A guys here, I'm interested on your take on this. Should the DR stand firm (we're talking about USD 500 million) and collect capital gain taxes?

    Thanks.
    As I see it, the DR has two primary choices:

    1. The all too familiar "don't look past the next quick buck" mentality that is shared by too many segments of Dominican society, from the highest levels of government who sell out the people to narco and and environmentally hostile foreign interests to tourist zone taxistas who will turn down market rate offers for fares for days on end in favor of sitting idly waiting for the chance to rip off an unsuspecting tourist.

    2. See the bigger picture of growing foreign investment to give the economy a sustainable long term lift based on earning the confidence of the international investment community by standing by established agreements.

    Some may wonder what could possibly outweigh half a billion US dollars. There is a short two word answer that is, IMHO, taken for granted far too often: foreign aid.

    Funny how seldom those two words come up when local demagogues are excoriating foreign diplomats for voicing the frustration of their citizens over some of the games that are played with property rights and contracts.

  4. #4
    Regular
    Join Date
    May 2006
    Posts
    54
    Post Thanks / Like

    Default

    This is an unfortunate issue that does not bode well for DR as it may turn away future foreign investments. But as I see it, it is in a standstill currently.



    Note: This is my personal opinion, an should not constitute investment
    advice. E-mail me at my personal address if you want to develop a dialogue.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •