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**Izzy** · 08-17-2012, 04:38 AM

Since you describe how any small mom 'n pop convenience store in the states, I suppose lesson #1 in the "Dominican business model" is cheating on taxes.

Oh, please, continue.

Certain sectors of the formal economy do operate under can't pay now, will pay later option. They simply don't pay the rated taxes and pay the penalties later for that (which are about always at reduced costs than most people realize here).

The DGII (IRS) allows this and tries NOT to force those business due to the implications of adding more burden to an already troubled business! The gov wants the business to pay the taxes on time, but if they can't they also want the business to stay open and keep people employed and the economy active.

This is unique to our system and possibly something other countries facing major economic troubles should allow on limited instances! It helps small business owners a lot and it shows!

The purpose of the gov is facilitate trade to grow the economy and regulate it. The purpose of the DGII is to collect taxes so that the gov can operate efficiently and focus on other problems that need attention. If the government allows the DGII to go after the business's neck for failing to pay taxes on time, and kills the business on the way, then the government itself is ruining the economy!

That's the reason why there's a big difference between failing to pay the taxes on time and tax evasion, where you hide assets from the DGII!

Tax evasion is criminally penalized, tax bills that go unpaid get amnesties to come clean and rejoin the tax paying business community anew.

08-17-2012, 04:38 AM	#28
Izzy Join Date Oct 2005 Posts 652 Senior Member	Since you describe how any small mom 'n pop convenience store in the states, I suppose lesson #1 in the "Dominican business model" is cheating on taxes. Oh, please, continue. Certain sectors of the formal economy do operate under can't pay now, will pay later option. They simply don't pay the rated taxes and pay the penalties later for that (which are about always at reduced costs than most people realize here). The DGII (IRS) allows this and tries NOT to force those business due to the implications of adding more burden to an already troubled business! The gov wants the business to pay the taxes on time, but if they can't they also want the business to stay open and keep people employed and the economy active. This is unique to our system and possibly something other countries facing major economic troubles should allow on limited instances! It helps small business owners a lot and it shows! The purpose of the gov is facilitate trade to grow the economy and regulate it. The purpose of the DGII is to collect taxes so that the gov can operate efficiently and focus on other problems that need attention. If the government allows the DGII to go after the business's neck for failing to pay taxes on time, and kills the business on the way, then the government itself is ruining the economy! That's the reason why there's a big difference between failing to pay the taxes on time and tax evasion, where you hide assets from the DGII! Tax evasion is criminally penalized, tax bills that go unpaid get amnesties to come clean and rejoin the tax paying business community anew.
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