10
Nov

In one of our articles, we mentioned the most serious Tax Crimes and their sanctions, which are handled by the Dirección General de Impuestos Internos office (DGII) according to our legal regulations.

We have spoken about the main taxes in the Dominican Republic as well. Non-compliance with these taxes results in debts with the DGII and starts a process of legal collection.

We make reference to this issue, in view of the fact that the debts caused by non-compliance with tax obligations are considered a Fiscal Crime. The DGII office oversees the collection of such debts in the country, both persuasively and through legal means.

In addition, the office of Dirección General de Impuestos Internos (DGII) can apply different precautionary measures to collect the debt, through the following means:

1. 1. Retentively seize the bank accounts of the taxpayer in question.

2. Closure of the establishment.

3. Non-issuance of Tax Receipt Number (NCF) and as a consequence, the limitation of carrying out financial activities, as a business or individual entity.

Not only this affects the main shareholder, but all other shareholders or partners that have at least 20% shareholding as well.

4. Disallow Imports and Exports.

The most concerning aspect of these actions is that the DGII office can carry them out by attributions of regulations and guidelines in the matter, without the need of a court ruling. Therefore, it is of upmost importance to avoid any potential involvement in a Legal process.

According to what is established by the DGII office, it can be collected when the debt is in default, and no security is required from a judgment issued by a Court.

As the name of our article states, how to handle a debt with the DGII office?

In recent years, the Dirección General de Impuestos Internos office (DGII), has initiated an important battle against tax evasion, since tax fraud in the Dominican Republic is very common in companies and individual entities, who are producing or selling outside the scope of the law and without paying taxes.

At the same time, you may also be a company or individual entity who usually fulfills their tax duties, but at a given time, cannot fulfill them.

As a result, if you have been involved in tax fraud or you are not an evader, but you find yourself in a “situation” that prevents you from making payments, you should know that there are several actions you must take as soon as possible. The reason behind this is that meeting deadlines is crucial for the success of your case. The actions we made mention of are:

• Seek advice from a specialist in the field. It may be from a Lawyer specialized in Tax or Fiscal Law, or from an accountant specialized in the subject.

• Prepare and organize the documents related to the file.

• We always recommend “reconciliation” with the purpose of:

A) Reduction of the debt.

B) Payment agreements in installments that you would be able to manage.

Many individuals and companies who have significant debts with the DGII office, arrange financing with financial intermediation entities, in order to pay off said debt.

The DGII office has established guidelines to arrange payment agreements. As a result, this will always be a viable option, as long as appropriate protocols are followed.

This is only applicable if you owe the pending debt. Otherwise, the decision taken by the DGII administration does not pertain to you. Given that multiple arrangements and steps need to be exhausted, it is very important to have a lawyer specialized in Tax Law. The terms are:

• Five (5) days after receiving supporting evidence documents regarding the offense in question, you will have to establish your defense based on what they presented.

• In the event that your Defense is not accepted, the DGII Administration will send the payment order resolution and its date.

• The following step is to raise a Contentious Tax Appeal before the Superior Administrative Court against the Resolution issued by the administration.

Our Morillo Suriel Attorneys at Law firm has a division specialized in Fiscal and Tax Law. This division can assist you with any concerns you might have in the matter.