Local October 7, 2011 | 8:30 am

RD$4.6B dodge from banking secret roils the tax agency

Santo Domingo. – The Internal Taxes Agency (DGII) Thursday revealed an Income Tax (ISR) evasion of around RD$4.6 billion through the banks last year, for which it defends its General Norm 13-2011 which retains 1% from the interests paid on company accounts.

The announcement is the latest salvo in that months long battle pitting the financial entities and Dominican Republic’s Tax authorities of banking secret row.

The DGII said the evasion through the banks is because the companies declare less than 50% of the value received from the taxes paid.

It said the Dominican financial system paid around RD$54 billion for interests last year, from which “RD$30.0 billion are received by the companies and constitute taxed income.”

In a statement published today Friday, the DGII said the financial companies and organizations which received those interests declared less than 50% of the value as income “for this concept.”

“As can be seen, there’s a difference between the income received and declared on interests of around RD$16.0 billion, which implies that the potential amount of unpaid Income Tax at the present rate would be RD$4.6 billion, just with data from that year (2010).”

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