Close Gallery
F. Fernandez casts a shadow...File.
Zoom Picture

Santo Domingo.-  Customs director Fernando Fernández said Monday that the online shopping business gives rise to a shadow economy, because it’s an undeclared illicit commerce, which he affirms has led to billions of dollars in losses to the State.

He said among the most serious findings were 2,137 unsigned checks written for RD$250 million, retained during just three weeks. “There’s an underground economy here that no one knew about."

"There are checks here for every taste; checks to be paid by 2015; checks with unknown payment date and payroll checks from companies in this country or to pay bills that don’t have proof of tax payment," Fernández said while showing reporters several boxes full of documents.

He said the revisions found undervaluation as high as 800% in the value goods, which has led to simple tax losses of RD$1.3 billion   just in 2013  and if it continues in 2014, “would total RD$ 4.5 billion if online purchases aren’t taxed.”

Share / Recommend this article: FacebookFacebook Digg thisDigg this del.icio.usdel.icio.us TechnoratiTechnorati YahooYahoo Facebook
COMMENTS
15 comment(s)
Written by: dreadlocks, 12 Aug 2014 9:37 AM
From: United States
it is not the online shopping business that gives rise to a shadow economy. it is the criminal disposition of people who find every dishonest loophole that exists. i have several friends who buy stuff over the internet, and nobody i know is involved in anything criminal. there is thievery and criminal behavior in every endeavor, starting with the political directorate.
Written by: foresthill, 12 Aug 2014 9:50 AM
From: Dominican Republic
dreadlocks, i couldn't agree with you more.

Now get ready for a gestapo type state.
Written by: Danilo, 12 Aug 2014 10:20 AM
From: Dominican Republic, SDQ --- VIGILADOR.COM (Beta) - Vigilando nuestra Quisqueya
"the revisions found undervaluation as high as 800% in the value goods"

I expected this; if price gouging didn't exist in this country this wouldn't be necessary!
Written by: bernies, 12 Aug 2014 10:27 AM
From: Dominican Republic, Juan Dolio
The problem with the customs director is that he is incompetent to do his job, if a bunch of people and businesses are committing these types of crime why doesn't his administration deal with it and put those people and companies behind bars and confiscate all their goods, checks and money that they have made by doing this. No but instead and since he and the people that work for him are so incompetent to do their jobs they chose to punished everyone including 98% of the people that are not doing it. In other words is like saying, well guys since we are so incompetent to do our jobs in preventing companies and people to commit tax evasion we are just going to have to punish everyone instead of going after the ones that are doing it. What a bunch no good people. Well we will see tomorrow what the court say about that.
Written by: anthonyC, 12 Aug 2014 10:40 AM
From: United States
"undeclared illicit commerce"

F*CK YOU.

No Commerce is illicit. The only thing illicit if the government using force and violence to appease their cronies.

Written by: zooma, 12 Aug 2014 10:55 AM
From: United States, and Dominican Republic

Yes, it is the country's nature to attack those who comply rather than address those who do not.

How many of us who drive well cared for vehicles are stopped by the authorities in order to get personal benefit or issue a fine for not having a valid sticker; while dozens of run down and beat up vehicles pass by the uniforms without notice.

Governent is selective with enforcement and goes after the easy targets.

Written by: chillinout, 12 Aug 2014 11:07 AM
From: Dominican Republic
All of a sudden a guy says the law was misread so he reverses it. Where are the people that wrote and approved the law to explain what it is supposed be.

I can understand applying the punitive 18% VAT tax since items are used here but the duty tax to 35% and luxury tax to 80% is obscene. Remember the 18% tax is also calculated on those 2 taxes plus shipping and insurance costs at the point of entry. I think when a store sells the item to us18% added again.

I have added 42% to the cost and shipping on items I shipped in. I still saved 50%- 60% vs buying local if able.

If the new taxes and shipping on anticipated purchases approach the $250 mark I'll just buy a ticket back to Fl or wait for a planned trip to get the stuff.

By the end of next year under CAFTA-DR Duty tax is eliminated on most items from America. Don't get too excited, No Duty tax on American car imports now but cars still cost 60%-100% more than in America. CAFTA -DR is really a scam for consumers & US expor
Written by: whipmeco, 12 Aug 2014 11:51 AM
From: United States, Colorado
"Shadow Economy" Director? You mean that online shopping is cutting into your "shadow economy" right? You can't get people to pay your "toll" if they get to shop online. What a heaping pile of horse-manure.
Written by: dreadlocks, 12 Aug 2014 12:03 PM
From: United States
says the grade school dropout

No Commerce is illicit. The only thing illicit if the government using force and violence to appease their cronies.

there are numerous types of illicit commerce, starting with the unsupervised trading in controlled substances and prescription drugs. then again, we know you knew that.
Written by: anthonyC, 12 Aug 2014 1:16 PM
From: United States



Ha

The resident fascist bigot is attempting to correct me. Now that is funny.





Written by: letsbereal1, 12 Aug 2014 2:22 PM
From: United States
It's nothing new the DR government is protecting its own pocket just like Congress in the US protects big Businesses.
Written by: chillinout, 12 Aug 2014 2:29 PM
From: Dominican Republic
Just used an export calculator using US$100,000. of laptop computers as an example adding a US$1000. shipping cost and US$500. insurance cost.

Export from Dominican Republic to USA --- Duty $0.00, US Merchandise Processing fee $346.00, IRS Tax $0.00

Total cost $346.00 to import into America from here.


From USA to Dominican Republic ------

Duty $0.00, Exchange surcharge $13,195, VAT tax $18,270

Total cost to import $31,465.00 Then retailer adds profit plus another 18% ITBIS tax I think.

No wonder why people are poor here.

Free trade agreement my butt.
Written by: dreadlocks, 12 Aug 2014 4:27 PM
From: United States
says anthonyc

Ha

The resident fascist bigot is attempting to correct me. Now that is funny.

that comes from the resident 6th grade dropout who told the readership that he has a PhD.
Written by: devin11, 12 Aug 2014 4:37 PM
From: United States, The Greatest City

Written by: anthonyC, 12 Aug 2014 1:16 PM
From: United States

Ha

The resident fascist bigot is attempting to correct me. Now that is funny.

--------------------

Nothing funny about it and he did correct you.

Written by: gomas, 13 Aug 2014 9:54 AM
From: Dominican Republic, puerto plata
what a dumb ass
Post Your Comment | Not a member? Create your account | Lost your password?
Write your opinion here. Please keep your comment relevant to this article. Please note that any comments which contain offensive language or discriminatory expressions may be edited/removed.
You must log in to post a comment:
Username Password