DGII applauds Constitutional Court decision safeguarding Dominican people’s funds

Santo Domingo.- The General Directorate of Internal Taxes (DGII) has expressed satisfaction with the decision of the Constitutional Court, which has safeguarded over 500 million pesos belonging to the Dominican people. The DGII’s Director General, Luis Valdez Veras, emphasized that the state’s assets should not be treated as spoils of war and that the actions of the DGII will always adhere to the constitution and laws.

Valdez Veras stated, “Thankfully, our country has a stable legal framework, with a responsible Constitutional Court and judges who uphold the law when administering justice.” He further emphasized that public positions are not inheritances and that he is prepared to resign if he ever violates the law.

To understand the context of the conflict between the lawyer and the Dominican State, it is important to explain its progression through the courts: On May 8, 2009, the Second Chamber of the Civil Chamber of the National District issued a judgment ordering the DGII to transfer 15 properties to lawyer Ramón Emilio Concepción. These properties were obtained by Concepción through a contingency fee agreement, where the lawyer’s fees are derived from a portion of the proceeds of the litigation. The court order required the transfer of the properties without exempting the DGII from collecting the real estate transfer tax. Additionally, a daily fine of RD$100,000.00 was imposed on the DGII for each day of non-compliance.

Upon receiving the notification of the Constitutional Court’s decision, the DGII proceeded to comply with the final decision of the first instance, which had already been transferred to Concepción. It should be noted that the DGII had already transferred eleven of the properties described in the judgment, without collecting the tax, at the request of the interested party.

Prior to the Constitutional Court’s ruling, Concepción approached the DGII requesting a “friendly settlement of the fine.” However, the DGII responded that settlement was not possible and that the only way to disburse public funds from the treasury was through the appropriate legal procedures, including the liquidation of the fine and registration of any debt with the Ministry of Finance.

These events led to accusations that the DGII had disregarded the Constitutional Court’s decision, which resulted in Concepción seizing various files related to the court.