The Customs Department has intensified its efforts to uncover major tax evasion in the previous government.
Customs has sent inspectors to six companies that the Listin Diario says the government has fingered for bilking the system of RD$20 million. The scheme regards companies who were taking advantage of the irregular application of Law 28-01, which authorizes generous tax exemptions to companies manufacturing in the provinces that lie along the border with Haiti. Customs officials said that these companies, using certificates of operation granted them under Law 28-01, had imported parts of various electronic appliances that were assembled and sold locally.
Customs Director Miguel Cocco says that from 2000 to 2004, import tax evasion represented more than RD$100 billion, but that he hoped to recover RD$50 billion in the next two years. He reported the recent recovery of RD$400 million stemming from 23 companies that have been scrutinized. Cocco also said his department has recouped a further RD$125 million for illegal tax exemptions made on vehicles granted during the past government.
President Leonel Fernandez openly expressed his support of the Customs Department’s efforts to increase government revenues.