Local October 10, 2011 | 7:51 am

Dominican Republic banks escalate row with tax agency

Santo Domingo. – The Commercial Banks Association (ABA) Sunday denied that its members dodge taxes and that the Internal Taxes Directorate’s (DGII) denunciation seeks to affect the banks’ credibility and public confidence.

The statement to the media is the latest salvo in a weeks-long battle of words pitting the country’s banks with the tax authority.

The ABA affirms that sector is one of the Income Tax’s (ISR) major contributors and that the DGII’s own data indicate that the banking system contributes 17 percent o the ISR paid by the business sector.

ABA’s statement comes after the DGII on Friday denounced an ISR evasion of RD$4.6 billion dodged through the banks last year, and defended the application of norm 13-2011 which retains 1 percent on the interests paid to the companies.

The norm took effect October 1, but the Superior Administrative Court suspended it provisionally, and will hand down its ruling Friday, on a restraining order requested by ABA.

In that regard ABA notes that no bank has ever been charged with tax evasion, because in its view the banking system’s financial statements are totally transparent.

It said those financial statements are published every quarter and twice yearly, with notes by independent auditors of international prestige, adding that the norm violates the Tributary Code and Access to Information Law.

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