Business leaders urge tax evasion clampdown

SantoDomingo.- The Herrera and Santo Domingo Province Association of IndustrialCompanies (AEIH) issued a call Sunday to the government and the tax authoritiesto fight tax evasion.

Thebusiness association president, Antonio Taveras Guzmán, said that this taskshould be combined with improved public spending through mechanisms fortransparency and accountability.

Hestated that these two approaches could represent a good start for presidentDanilo Medina’s second term, since tackling tax-related problems in this countryshould be one of his main challenges.

He said that evasion, which is mainly caused by the largely informal nature ofthe economy, remains a serious problem for the tax apparatus, while warningthat tax evasion has the features of a “fiscal catastrophe” that must be confronted.

He said that the situation creates unfair competition in the markets and distortionsthat undermine those who do fulfill their taxation obligations according to thelaw. “Some feel forced to incur in bad practices that they do not want, as aresult of elusion”.

“This is why the problem must be tackled urgently, because it will markedlyimprove productive sector competitiveness, it is a challenge for thegovernment, but it is also the responsibility of the business leadership”,stated the AEIH president.

He said that through correct spending and by controlling evasion, thegovernment would have the resources it needs to take on its tasks ofdevelopment as well as ending the problem of depleted public coffers.

According to Taveras Guzmán, “Now that a new government is starting, withrenewed energy, with new plans and with the aim of accelerating the pace ofchange, it is the perfect moment to resolve the serious problem of taxationaffected by evasion.”