The deputy of Dominican Liberation Party (PLD) Víctor Suarez, submitted this Wednesday a bill that modifies Law No. 11-92, of the Tributary Code of the Dominican Republic, whereby tax avoidance is established as illegal.
The legislative initiative, which modifies article 248 of said law to add two paragraphs, is presented after the bicameral commission in charge of the bill on domain forfeiture trials for the civil confiscation of illicit assets approved the report of the piece, excluding tax avoidance.
One of the paragraphs of the proposal specifies that this infraction is incurred by whoever commits any action that seeks to avoid the payment of tax obligations, when the event generating the obligation has occurred in Dominican territory, ‘diverting it to a territory or State’ that is characterized by applying a tax regime especially favorable to non-resident citizens and companies, constituting a form of illicit tax planning and ‘sanctioned by this Law’.
The other paragraph establishes that “it constitutes an aggravating circumstance if, in order to avoid the payment of tax obligations, it is diverted to territories” on the gray and black lists of the International Financial Action Group, the International Monetary Fund, of non-cooperative countries and territories of the European Union , non-cooperative countries by the Global Forum on Transparency and Exchange of Information for Tax Purposes.
With the piece, the deputy seeks to modify the domain extinction bill so that the figure of tax avoidance is included, as the bicameral commission had approved in one of its meetings.
PLD position
The Dominican Liberation Party urged its legislators to support the domain extinction bill as “as approved” in the bicameral commission empowered by it, “with the inclusion of tax avoidance.” The political organization offered the information at a press conference held yesterday at the party’s national house.
Today, through a statement, the PLD made a commitment to support in the Congress of the Republic the bill for the extinction of domains “only and exclusively in the event that the wording is in accordance with the Constitution and that tax avoidance is included among the elements that generate domain extinction, as was agreed upon in the bicameral commission.
