Santo Domingo.- TheSupreme Court on Wednesday overturned the San Pedro Civil Court ruling whichhad ordered CEMEX Dominicana to pay Quisqueya township RD$893 million, or 3% ofthe company´s gross income from 2011 to 2013.
The high courtruling dated July 15 determined that CEMEX Dominicana pays all applicable taxesas an industrial company, for which it cannot taxed for the same activity twice,as the City Council claimed.
It said since CEMEXDominicana pays income tax on its net profit, it doesn’t have to pay a city taxon the same tax base, because it would create double taxation banned by the Constitution.
The ruling adds thatthe Quisqueya city council based its claim on an erroneous interpretation ofArticle 284 of Municipal Law 176-06.