Dominican tax amnesty, a scheme to launder money?

Santo Domingo.- The 180 calendar-day period to reap the benefits of Law 46-20 on Transparency and Asset Revaluation, which expired on January 11, was short for a number of taxpayers to access the tax amnesty, which people label as a money laundering scheme.

It was what motivated Senator Faride Raful to request an amendment to the legislation, ensuring that several people had not yet been able to declare and revalue their assets, first proposing that the term be extended for 180 days, which she later asked to be for 90 days.

The law establishes: Individuals, legal entities and undivided successions and any subject or entity of private law, could avail themselves of this and declare or revalue their assets and rights and regularize their tax situation for debts pending before the General Directorate of Internal Taxes (DGII).

The owners of real estate located in the country or abroad, furniture (furniture, vehicles, machinery and equipment), aircraft, yachts and the like, cash, inventories and shares and securities, are part of the properties that could regularize or revalue.

However, those who try to make transparent money deposited in banks in Panama, Bahamas, Barbados or other nations classified as high-risk or non-cooperating countries, as well as goods from illicit activities, were excluded from the benefits.

The rule of application of the law established that in cases of transparency and equity revaluation the payment would be 2%, applied on the tax base. In addition, an additional rate of 3.5% on the average amount of net operating income declared for purposes of ISR (income tax) in fiscal years 2017, 2018 and 2019.

For tax debts, prior to the promulgation of Law 222-20, they may be settled by making a single and immediate payment of 70% of the determined tax.

Likewise, in the case of debts that come from ordinary declarations, self-assessments and / or voluntary rectifications not paid in a timely manner, the facility will consist of the payment of 100% of taxes and up to 12 months of interest.