Moves Being Made to Control Tax Evasion in the Dominican Republic

Juan Hernández Batista, the head of the Directorate General of the Intern Revenue(ITIBIS) office, confirmed that currently tax evasion in the Dominican Republic has come under control in 24% of the cases as the office prepares to increase that number. The head of the Tax Office referred to the Pastoral Letter published recently in the Episcopado Dominicano by Nicolás de Jesús , Cardenal , López Rodríguez , which refers to Tax Evasion as one of the evils “along with drug trafficking and corruption, and which goes on shamelessly in many areas of our society.”

Hernández Batista said that, thanks to the Information Cross-Checking System being used by the Internal Revenue office, they are hoping to reduce ITIBIS tax evasion 19 to 20%…

“That which is expressed in the Pastoral Letter is not a criticism. It constitutes a recognition on the part of the Dominican Church of the efforts this institution has been making with the goal of reducing this evil. To state with clarity that tax evasion is a crime like any other is to place it in its correct dimension and, moreover, is an indication that as such it should be confronted and the full rigor of the justice system should be applied to offenders,” said the Director General of the Intern Revenue office.

Hernández Batista said that, thanks to the Information Cross-Checking System being used by the Internal Revenue office, they are hoping to reduce ITIBIS tax evasion 19 to 20% by the end of the current tax period.

Controlling Toll Roads

The DGII Director revealed that beginning on June 1, 2009, cameras will be installed on all toll roads throughout the country. They will monitor the movement and transport of commercial merchandise. The cameras will be interconnected to the security areas of the tax administration to control the illegal movement and sale of merchandise.

This measure, he explained, was requested by big taxpayers in order to avoid disloyal competition of merchandise being sold off the books. Security officials along the toll roads will be demanding a legal Proof of Tax Payment for the purchase of cargo that will reflect the name of the seller and to whom the cargo is to be delivered.

“Merchandise that does not have the proper documentation will be confiscated,” he warned.

There are other measures, in addition, that will be implemented this year which include the Tax Printers and the new system of Simplified Tax Procedure (PST), all of which form part of the move to control tax evasion in the Dominican Republic.