Director of the DGII proposes that the DR requires modifying the Tax Code

Aug 21, 2019

The Director General of Internal Revenue, Magín Díaz, warned that the Dominican tax system cannot withstand the postponement of a thorough update to the Tax Code, which has been in effect for 25 years.

Magin Miniatura 700x600 Díaz, who participated as a guest speaker at the American Chamber of Commerce of the Dominican Republic (AMCHAMDR) monthly luncheon, stated that the Tax Code amendments must be made "through consensus and without political or corporate populism" to adapt it to the economic framework in which society lives today.

Prior to Díaz's presentation, Ramón Ortega, president of AMCHAMDR, advocated for the National Congress to approve the Customs and Notary Public laws during the current legislative session.

"It is of utmost interest to the American Chamber of Commerce that these projects, which have been worked on jointly by members of the private sector and public entities, can become laws. We understand that this would send a positive signal regarding guaranteeing the investment climate and macroeconomic stability in the country," Ortega stated.

During his conference entitled "Transformations and Perspectives of the General Directorate of Internal Revenue (DGII), Magín Díaz stated that over the past three years, the DGII has undergone a "robust and far-reaching" reform focused on supporting voluntary compliance, increasing tax oversight, promoting institutional development, and strengthening the technological base with an investment of US$$15.0 million.

He also stated that the results of these changes are evident in the collections and the fulfillment of the institution's budgetary goal.

"Over these three years, revenue collections have consistently grown at double digits and above the nominal growth of economic activity; at the same time, we broke the nine-year cycle in which the DGII failed to meet its budget target, surpassing it in the second half of 2016 and throughout 2017 and 2018," Díaz said at the AMCHAMDR luncheon.

Díaz also presented the progress the institution has made with the new tax receipt system, one of the most important reforms to combat tax evasion, and electronic invoicing, whose pilot plan has attracted the participation of renowned companies in the country.

He also advocated for the transformations that have made the tax collection institution a strong, modern, and institutionalized entity, based on the redefinition of its strategic plan, to be sustained over time regardless of who is leading the state administration.

"As a society, we must ensure that, regardless of the political affiliation in power, the Internal Revenue Service remains a reliable, up-to-date, technical, efficient, transparent, and results-oriented entity in terms of tax collection, offering taxpayers efficient, professional, and ethical services," he noted.

He noted that "a possible regression of the DGII would make the government's bureaucracy unviable and would be a failure for the country," while reaffirming his commitment to continue fighting for an independent, ethical tax collection agency, free from partisan politics, "without favoring those in power, much less harming those outside it."