DGII warns increase in NGOs and business closures warrants tax review

Santo Domingo.- Director General of Internal Taxes (DGII) Pedro Urrutia voiced concern over the growing number of newly created non-governmental organizations (NGOs) and the increasing liquidation of companies, saying both trends warrant closer scrutiny by tax authorities.

Speaking during a meeting with representatives of the Dominican Confederation of Micro, Small and Medium Enterprises (CODOPYME), Urrutia said that while some businesses legitimately report financial losses, others continue importing assets or carrying out commercial activities that appear inconsistent with their declared financial condition.

He also noted that tax records show periods in which several companies are dissolved while multiple NGOs are established, a pattern the DGII believes should be examined to determine whether these entities are being used for legitimate purposes or to circumvent tax obligations.

Urrutia stressed that nonprofit organizations must operate in line with their stated mission and said the DGII is responsible for ensuring compliance. As an example, he questioned whether an NGO created for religious activities would have a legitimate need to acquire luxury assets, arguing that such cases justify further investigation as part of the agency’s oversight responsibilities.