Santo Domingo.- The Internal Taxes Agency (DGII) revealed yesterday Friday that 19,780 companies (92.49%) which receive income on interest earned from fixed-term deposits in the country's banks, don’t pay the 29% of their income which should be reported as such.
DGII statistics show that it has 21,385 companies listed which receive interest from taxable income via the 1% tax on interests, but there are 11,300 of those which declare the Tax on Income (ISR), but are earning income from interest, "and 8,480 which don’ declare any tax."
Its statistics also reveal that only 7% of all companies which must pay tax on income from taxable interest comply with their statements, as state in DGII Norm 13-2011, which means that only 1,605 have declared receiving income on interests.
Norm 13-2011 identifies financial intermediaries as withholding agents of the 1% interest paid to any legal person, issued by the DGII on September 5, 2011.
Hearing
In a statement, the DGII said it defended the application of Norm 13-2011 at the hearing held yesterday in the Constitutional Court, based on its belief that it meets the Constitution’s legal precepts.
Written by: BLANCO, 23 Jun 2012 9:42 AM
From: Dominican Republic
better get somebody to redo this story!!!!
From: United States, FREEPORT, Long Island.... ((You're blind to the fact that you're blind))
What a cluster-Phuk!!!!
Written by: Escott, 23 Jun 2012 10:56 AM
From: Dominican Republic, Cabrera and Sosua a 2 days a month for payday
Can someone explain this to me?
Written by: josean, 23 Jun 2012 11:11 AM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016
er
Written by: josean, 23 Jun 2012 11:11 AM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016
Here you go Escott:
Written by: josean, 22 Jun 2012 11:28 AM
From: United States, Dedicating 4 more years to fighting the Dictatorship of the Narco PLD Mafia
Here is REAL example of how Lie-onel Fernandez has put his BS International Rhetoric of "which allows humans to produce, and evenly distribute wealth" in practice in the Dominican Republic.
Fill this one under Leona Helmsley; “Only little people pay taxes”
……. especially in PURPLELANDIA, where Narco Lie-onel Fernandez and the PLD Mafia have mastered the art of “STEALING from the Poor to Give to the Rich” in their so-called NARCO-MARCO-Economic Miracle.
“According to DGII lawyer 92% of companies linked to banking evade taxes, according to lawyer DGII”
“SANTO DOMINGO, Dominican Republic-Representatives of the Directorate General of internal taxes (DGII) reported Friday that 92 per cent of the 21 thousand 385 companies linked to banking evade taxes.”
continued:
Written by: josean, 23 Jun 2012 11:12 AM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016
No wonder the "Laundromats", I mean Financial sector reports such exorbitant profits!
noticiassin.com/2012/06/el-92-de-empresas-ligadas-a-operaciones-bancarias-evaden-impuestos-segun-abogada-dgii/
From: Dominican Republic, calle A.Portes
This has absolutely nothing to do with Leonel ..Here , we have the perfect example of companies that do not pay their tax obligations ,,This is whay we need a proper computer base for taxation in this country so that the tax cheats can be found out and then they can be given large accounts with penalty charges...the same as happens in every other country ..and the penalties for non payment are numerous including seizure of assets and imprisonment
Written by: DomRat, 23 Jun 2012 12:16 PM
From: Dominican Republic
How about we let them earn their money and employ Dominicans and produce goods and services and be thankful they are there and have their money in National Banks rather than hidden in offshore accounts. This tax and spread the wealth is really an issue of the Government wanting to do the handing out. These businesses already do a vital job and compete with other national and international businesses. Now they want more from them and all the bookwork that goes with it on both the side3 of the business and the employees of the government to oversee everything. Too many empty suits shuffling paper, let the businesses earn and spend - employ and produce. This is why I left my native country - nothing but a never ending cascade of regulations and regulators - who by the way, could not run a competitive business of their own to save their soul.
Written by: RonEvane 
, 23 Jun 2012 12:59 PM
From: United States, Gaithersburg, Maryland
Aha! Here's money that can be directly funneled into education. Surely there must be enough to build more schools and pay educators a decent salary!
From: Dominican Republic, calle A.Portes
Domrat ..I do not agree ..if they were to invest overseas they would definitely be paying tax and much more ..so why should the companies not pay tax on their income gained in the DR
Written by: juanb, 23 Jun 2012 1:37 PM
From: Dominican Republic
We have more laws than assistant ministers. That's a lot of laws.
Unfortunately just as the ministers don't work, neither do the laws. Without law enforcement laws are meaningless.
From: United States
DomRat, are you serious? you mean that they should not pay taxes on unearned income? why not? colmados pay itbis, for chrissakes! what is with this supply side foolishness? are you one of these people who believes that if you give the rich more money, they will employ people? NONSENSE. they will simply put the profits into more interest and dividend bearing instruments. why should they hire people, train them, pay them a salary, and pay them liquidations, when they can simply put the money into the capital market, and let it grow interest? then, they avoid paying the tax on the interest. the solution is simple. AUTOMATE the deductions. the financial institutions should be forced to take out the government´s share on a PAYE basis. that would cure the skullduggery.
From: Dominican Republic, calle A.Portes
well in fact in many countries that is done...you have to give the bank your tax file number and if you do not , then you receive your income less the tax that is due ..if it is an over seas company that has the deposit then the withholding tax can be more
From: Dominican Republic, calle A.Portes
just shows how much money this government lets flow away ...a modern computer programme is essential here
Written by: RoyStone, 23 Jun 2012 8:29 PM
From: Australia
Dready,
Companies do not employ people to do jobs that need to be done, to give a return on investment. They do not employ people to reduce the country's unemployment rate, and nor should they.
If they law is to pay tax on the interest of money in the bank, then they should obey the law. However from a philosophical perspective, without money in the bank, the bank cannot make loans for other companies to use to invest. Also the interest they earn is partially eroded by inflation.
Written by: josean, 23 Jun 2012 10:41 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016
Like the Spinmiester says; Of course Lie-onel Fernandez has nothing to do with Tax Policy or enforcement of laws; he has only been a Teflon President for 12 of the last 16 years!
"The lower income Dominican consumer pays 65% of the taxes"
"SANTO DOMINGO, Dominican Republic-in the Dominican Republic there is great distortion in the tax system that leads to sectors of society who earn less money pay more taxes, contributing 65 percent of tax revenues received by the State."
acento.com.do/index.php/news/18204/56/El-consumidor-dominicano-de-menos-ingresos-paga-el-65-de-los-impuestos.html
¡Querían Moraó Cojan Moraó!
From: Dominican Republic, calle A.Portes
Roy it is not just interest on the fixed term deposits that attracts tax ...all interest from investments in any company or to any person attracts the tax...is same the world wide...only with dividends can an investor get an offset , called franking , because the company has paid the tax prior to paying dividends and so would be double dipping ..
Dreadlocks is 100% correct ,,and what Josean says it is completely incorrect .If he was referring to the ITBIS , then he may closer to the mark
From: United States
Ricardolito, i read some really scary data, just a few days ago. the value of ALL international trade, in the entire world, is 6 TRILLION dollars per year. that includes all the oil, agricultural products and commodities, precious minerals, clothing, footwear, automobiles, machinery and equipment, medical supplies, furniture, ships, boats , electrodomestics. think of anything that is traded between countries. 6 TRILLION. do you know how much money is involved in the buying and selling of stocks and bonds, and interest and dividend bearing paper, DAILY? 1.9 TRILLION! in 3 days, more money sloshes through the phantom financial market than all real goods pass through the world trade in a year! if people can make all this money, by simply moving money around, why go through the hassles of employing people, and paying them?that is why, in part, trickle down economics is a fallacy.
Written by: josean, 24 Jun 2012 12:50 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016
Leve him Dumb Dread!
He is still trying to prove that Money Laundering is a Economic Tool that benefits society!
From: United States, NJ
juanb;
That was a good analogy... we have more laws than assistant ministers and they ca not or will not be re inforced.
unfortunately as the ministers don't work neither do the laws.
Very well said.
From: United States, NJ
See why the country is so deep in debts ? since no one wants to pay its due tax. How do we expect to get money for education,health,drinking water and to run a gvt?
From: Dominican Republic, calle A.Portes
the value of stocks, bonds and futures and derivatives and bills of exchange etc that are traded around the world is indeed scary ,,,but in most countries it is regulated in markets that are both self regulating and government regulated so that every trade should go into the overall total which the various exchanges report through to the various tax offices ,in both total and in every name . The through the huge data bases that exist , the tax office technically knows every trade I make , even though it is minute to the total . so that tax is paid on trades, on profits ,on dividends and on interest .I think that where you are wrong in suggesting that playing the markets is easier than employing people is that there are more losers in these markets than winners and the turnover is only always good for brokers and tax offices .
Actually , some years ago, I sold my businesses and invested in gild edge and never been happier but I do not trade .
From: Dominican Republic, calle A.Portes
The problem in this country that there are no compliance sections and no large computer bases, so there is mass cheating ..and here things really are phantom ..not so in regulated countries.
I see your point about the ease of making money through financial markets destoys the trickle down theory. If you look at this pragmatically in the DR , the rich here make a lot of money by avoiding tax but how does this trickle down to the next level of rich and so on .Well it does a little because the rich who become richer will buy things they could not afford before , such as a mansion in Casa de Campo and cars from Viajmar but the trickle down is not great and I agree the trickle down theory is correct but the effect is limited..I would like to be proved wrong .
Josean , best for you to just keep to your cut and paste comments as thought defies you ...but just to try to get you thinking would you prefer the money launderers to build apartments or to throw the money away..neither is correct
Written by: RoyStone, 24 Jun 2012 4:00 PM
From: Australia
Dready,
This trading in squillions of dollars in stock exchanges is not real money. As you say, no product actually changes hands, so it is not real. However this is not new, it has been going on for centuries. It just happens much faster in the electronic age. Take the gold futures market for example. No-one actually takes delivery of any gold. Likewise if everyone wanted to withdraw the money that is theoretically sitting in their bank account (as they did in 1929) the money is not actually there.
I think it was Napoleon who tried to stop this. He considered only those who actually produced something or provided a real service as contributing to the empire. He failed.
From: United States, NJ
Roy :
I think it was the USA prior to WW2 ,that got out of the gold currency, so we could print as many paper bill backed up by the US might to produce good & services. A good example is Ft Knocks has no gold in reserve, Only the Fderal bank in NYC. If i recall my history i think it was French president Degaul who collected all the paper bills in Europe and got gold for it, That is all that were floated prior. I think the USA got the idea after all the Gold in the Spanish treassury got shipped to Russia for safe keeping since the Communist Republic could not trust the west.That
Gold was never returned to Spain and that is how the Soviets were able to buy goods and services from the USA and England in WW2 since they did not produce anything .
From: Dominican Republic, calle A.Portes
Wonderful week with Hancocks half hour when he went to a bank to actually make sure his 10 pound note was safe ,,eventually they showed him a 10 pound note but he said it was not his as it had no mark on the corner ..and there was a minor run on the bank ..I think I miss those comedies from BBC more than anything ,,everything is so serious now
Written by: josean, 24 Jun 2012 6:54 PM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016
Mr. Spinmeister,
This Cut and Paste is especially for you now that you have you think of yourself as an expert in financial sector of the economy:
"It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt".
Mark Twain must have forethought your birth!
Written by: DomRat, 24 Jun 2012 10:08 PM
From: Dominican Republic
FDR when president recalled virtually all gold held by people in the U.S. of A. After several years of confiscation and refunds of fiat currency at $22/ounce he put the U.S. on an International Gold Standard setting the dollar at $35/ounce. Robbery? Richard Nixon reigned over a sovereign default by the United States when he withdrew from the Brenton Woods agreement concerning the repatriation of gold for fiat dollars at a time when France was particularly aggressive about exchange of paper dollars for gold. Since then the Federal Republic of America has twisted the arms of the Oil Sheiks to only accept dollars for petroleum trades, keeping a demand for dollars. Saddam’s switch to Euros led to his bloody removal. End of history lesson. Pay for what you consume – earnings by the sweat of your brow should really be the class of ‘gain’ untaxed.
Smaller
Bigger
Close Gallery
Facebook
Digg this
del.icio.us
Technorati
Yahoo
Here you go Escott:
Written by: josean, 22 Jun 2012 11:28 AM
From: United States, Dedicating 4 more years to fighting the Dictatorship of the Narco PLD Mafia
Here is REAL example of how Lie-onel Fernandez has put his BS International Rhetoric of "which allows humans to produce, and evenly distribute wealth" in practice in the Dominican Republic.
Fill this one under Leona Helmsley; “Only little people pay taxes”
……. especially in PURPLELANDIA, where Narco Lie-onel Fernandez and the PLD Mafia have mastered the art of “STEALING from the Poor to Give to the Rich” in their so-called NARCO-MARCO-Economic Miracle.
“According to DGII lawyer 92% of companies linked to banking evade taxes, according to lawyer DGII”
“SANTO DOMINGO, Dominican Republic-Representatives of the Directorate General of internal taxes (DGII) reported Friday that 92 per cent of the 21 thousand 385 companies linked to banking evade taxes.”
continued:
No wonder the "Laundromats", I mean Financial sector reports such exorbitant profits!
noticiassin.com/2012/06/el-92-de-empresas-ligadas-a-operaciones-bancarias-evaden-impuestos-segun-abogada-dgii/
Aha! Here's money that can be directly funneled into education. Surely there must be enough to build more schools and pay educators a decent salary!
We have more laws than assistant ministers. That's a lot of laws.
Unfortunately just as the ministers don't work, neither do the laws. Without law enforcement laws are meaningless.
Companies do not employ people to do jobs that need to be done, to give a return on investment. They do not employ people to reduce the country's unemployment rate, and nor should they.
If they law is to pay tax on the interest of money in the bank, then they should obey the law. However from a philosophical perspective, without money in the bank, the bank cannot make loans for other companies to use to invest. Also the interest they earn is partially eroded by inflation.
Like the Spinmiester says; Of course Lie-onel Fernandez has nothing to do with Tax Policy or enforcement of laws; he has only been a Teflon President for 12 of the last 16 years!
"The lower income Dominican consumer pays 65% of the taxes"
"SANTO DOMINGO, Dominican Republic-in the Dominican Republic there is great distortion in the tax system that leads to sectors of society who earn less money pay more taxes, contributing 65 percent of tax revenues received by the State."
acento.com.do/index.php/news/18204/56/El-consumidor-dominicano-de-menos-ingresos-paga-el-65-de-los-impuestos.html
¡Querían Moraó Cojan Moraó!
Dreadlocks is 100% correct ,,and what Josean says it is completely incorrect .If he was referring to the ITBIS , then he may closer to the mark
Leve him Dumb Dread!
He is still trying to prove that Money Laundering is a Economic Tool that benefits society!
That was a good analogy... we have more laws than assistant ministers and they ca not or will not be re inforced.
unfortunately as the ministers don't work neither do the laws.
Very well said.
Actually , some years ago, I sold my businesses and invested in gild edge and never been happier but I do not trade .
I see your point about the ease of making money through financial markets destoys the trickle down theory. If you look at this pragmatically in the DR , the rich here make a lot of money by avoiding tax but how does this trickle down to the next level of rich and so on .Well it does a little because the rich who become richer will buy things they could not afford before , such as a mansion in Casa de Campo and cars from Viajmar but the trickle down is not great and I agree the trickle down theory is correct but the effect is limited..I would like to be proved wrong .
Josean , best for you to just keep to your cut and paste comments as thought defies you ...but just to try to get you thinking would you prefer the money launderers to build apartments or to throw the money away..neither is correct
This trading in squillions of dollars in stock exchanges is not real money. As you say, no product actually changes hands, so it is not real. However this is not new, it has been going on for centuries. It just happens much faster in the electronic age. Take the gold futures market for example. No-one actually takes delivery of any gold. Likewise if everyone wanted to withdraw the money that is theoretically sitting in their bank account (as they did in 1929) the money is not actually there.
I think it was Napoleon who tried to stop this. He considered only those who actually produced something or provided a real service as contributing to the empire. He failed.
I think it was the USA prior to WW2 ,that got out of the gold currency, so we could print as many paper bill backed up by the US might to produce good & services. A good example is Ft Knocks has no gold in reserve, Only the Fderal bank in NYC. If i recall my history i think it was French president Degaul who collected all the paper bills in Europe and got gold for it, That is all that were floated prior. I think the USA got the idea after all the Gold in the Spanish treassury got shipped to Russia for safe keeping since the Communist Republic could not trust the west.That
Gold was never returned to Spain and that is how the Soviets were able to buy goods and services from the USA and England in WW2 since they did not produce anything .
Mr. Spinmeister,
This Cut and Paste is especially for you now that you have you think of yourself as an expert in financial sector of the economy:
"It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt".
Mark Twain must have forethought your birth!