Tax Evasion Penalties and Fines Soar in Dominican Republic as DGII Cracks Down

DGII Sees Significant Increase in Collections of Fines and Penalties

Santo Domingo - The General Directorate of Internal Taxes (DGII) has reported a staggering 301.3% increase in collections of fines and penalties from taxpayers for the year 2021 compared to the same period in 2020.

Key Statistics:

• RD$369.4 million: Total collections of fines and penalties between January and November 2021
• 94.9%: Achievement of collections target for the same period
• 301.3%: Increase in collections of fines and penalties compared to 2020

Reasons Behind the Significant Increase

The DGII’s efforts to crack down on tax evasion and default have led to this remarkable achievement. Tax evasion occurs when a taxpayer submits false or inaccurate declarations, while default happens when a tax debt is paid after the established deadline.

• Tax Evasion: Occurs when a taxpayer submits false or inaccurate declarations
• Default: Happens when a tax debt is paid after the established deadline

Comparison with Previous Years

The collections of fines and penalties for 2020 were significantly lower at RD$92 million, a year marked by “temporary tax forgiveness” due to the COVID-19 pandemic. In comparison, the DGII’s collection of RD$258.4 billion in 2018 and RD$271.8 billion in 2019 also pale in comparison to the 2021 figures.

Conclusion

The DGII’s relentless pursuit of tax evasion and default sends a clear message that the entity will not tolerate any form of tax avoidance or non-compliance. As the Dominican Republic continues to navigate its economic landscape, it is likely that the DGII will maintain its aggressive stance against tax evasion and default.