DGII plays tricky

[NewsWhore]

The government has remained adamant that it will not raise taxes or add new taxes, but according to Listin Diario the Tax Department (DGII) is finding ways of increasing collections for taxes already on the books. To this end DGII has updated the way assessors value a property with the intention of increasing collections on taxes on real estate properties (IPI) or taxes on homes or plots considered in the luxury residence category (IVSS) for the 2009 fiscal year. This IVSS and IPI only affect properties valued at more than RD$5 million and assessors take into consideration the size of the property, its location and the surrounding conditions. This measure was initially passed in 2005, when the value of the IVSS and IPI was only applied to properties with a maximum value of RD$3 million. The DGII has announced that the first payment of the new quota will be made on 11 March 2009. According to Listin Diario, once the adjustments are made by the DGII a house that was valued at RD$4 million in 2005 could now be valued at RD$6 million, and will have to pay 1% of its value in taxes. The IPI is paid in two payments, the first in March and the second on 11 September. Failure to pay on the given dates results in a fine of 10% on the value of the taxes paid per month, 4% for every month not paid and a 1.73% interest rate.

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