Local April 17, 2024 | 8:25 am

Closure of Asian-owned businesses for tax violations

Santo Domingo.- The General Directorate of Internal Taxes (DGII) and the General Directorate of Customs (DGA) have shuttered five commercial establishments in the National District and Santiago following intelligence operations uncovering violations of several articles of the Tax Code.

Analysis of financial intelligence reports by the units tasked with combating tax crimes at both agencies revealed unlawful practices, including failure to issue invoices with tax receipts, absence of tax solutions, and misrepresentation of information in the companies’ sworn statements to underreport their actual income.

These establishments, owned by Asian merchants, conducted banking transactions totaling approximately RD$4,000 million while concealing the true economic data from tax authorities, to the detriment of the Dominican State.

The closures were prompted by investigations revealing bank transfers exceeding reported ITBIS operations by over 90%, alongside unreported cash sales.

These penalties represent second-degree sanctions, as the businesses had previously been fined but failed to rectify their non-compliance.

The closed establishments are as follows:

  • Importadora Fuhao 2028, SRL, located at Avenida José Martí 142, Villa Francisca, National District, Santo Domingo.
  • Long Xin, SRL, located at Avenida Duarte 142, Mejoramiento Social, National District, Santo Domingo.
  • Zina Import, SRL, located at Avenida Duarte 207, Villa Consuelo, National District, Santo Domingo.
  • Repuestos By Zang & Lau, SRL, located at Avenida Duarte 39, corner Avenida México, Villa Francisca, National District, Santo Domingo.
  • Business Manila & M, ARL, located at 178 Manuela Díez Street, Social Improvement, National District, Santo Domingo.

These enforcement actions were conducted by personnel from the Tax Fraud and Crime Investigation Management, along with military personnel assigned to the DGII and DGA, following an analysis of tax discrepancies affecting the informality of the Asian commercial sector.

These measures are part of a Special Inspection Project aimed at curbing evasion and fostering fair competition among businesses. Last year, approximately 4,000 fines were imposed for non-compliance with formal duties, with 207 of these fines targeting Asian merchants. Currently, 22 Asian businesses are under investigation for potential prosecution.

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Paul Tierney
April 17, 2024 12:28 pm

OK, the Asian merchants violating tax codes have been apprehended. Good! Was it because of the complaints of Dominican competitors predjudiced against the Asians profiting better than they? It seems any apprehensions of Dominican merchants for similar violations don’t happen or seem to be not reported at all.

One can bet there are many Dominican merchants who dip into the day’s cash drawers to line their pockets. Those cash scoops are not declared.

April 18, 2024 1:05 am
Reply to  Paul Tierney

In the story, it said “approximately 4,000 fines were imposed for non-compliance with formal duties, with 207 of these fines targeting Asian merchants.”
Who do you think the other 3793 fines went to? Maybe Romanian gypsies who happened to be passing through the RD? Is it remotely possible the people fined were maybe DOMINICANS? I understand your desire to bash th e government of the RD but please do it honestly and logically.

Paul Tierney
April 18, 2024 11:39 am
Reply to  Edward

Respectfully, of the 4,000 fines imposed, 5% of them were levied against the Asians. It asks the question why were the Asians singled out for this media report, not some other group, such as Spaniards, Mexicans, No. Americans?

April 18, 2024 12:32 pm
Reply to  Paul Tierney

It’s a newspaper article not a book. The author chose to write the story about the Chinese situation. It’s his/her choice.

April 17, 2024 1:01 pm

Dominican businesses get treated equally if they evaded paying taxes, please don’t think this some sort persecution of people of Asian origin.

Paul Tierney
April 17, 2024 3:38 pm
Reply to  TRUJILLO

If Dominican businesses are treated equally, the question to be asked is when and where are the media reports of apprehensions?

It is not unheard… finger pointers accuse others of violations they commit just to focus attention away from themselves.

April 18, 2024 1:10 am
Reply to  Paul Tierney

More of the same from you. You’re getting predictable and boring.