2001News

Tax evasion in the DR

In her column in Listin Diario, Rosa Maria Jimenez responds to Teofilo Tabar’s disclosure of the many ways taxes are evaded in the DR. (see Tax Evasion explained at http://www.dr1.com/daily/news053101.shtml). She wonders why the department does not do more about this situation. “What is really the problem? Have they not been able to, have they not wanted to, or have they not known how to improve tax collections?” she asks. She says government tax collections will improve as soon as the system incorporates better detection of tax evaders and higher fines. She also points out that Ramon Frediani, an international consultant, says the success of tax collection policies depends on the honesty and transparency of government spending. “But then, in our country there continues to be exaggerated spending on government payrolls, an increase in government departments and ministries, waste on luxury vehicles for government officers and assistants, and expense accounts. As long as the citizen does not see his taxes used for building roads and paved streets and for fair social security, there will always be the justification for the culture of tax evasion.”