NewsWhore
08-29-2006, 02:20 PM
According to Dominican Ambassador to Canada, Eduardo J. Tejera, if Verizon Dominicana (buyer American Movil) and Falconbridge (buyer Xstrada) have been sold and in consequence generated capital gains of national origin, they should pay taxes, as do all companies in Canada or any other part of the world. In a note to Clave Digital, the diplomat explains that the cases of the two companies are very different and should be studied under different tax formulas. Tejera claims to be surprised at the fact that Verizon Dominicana President Jorge Ivan Ramirez had asked him not to mention the company as being Canadian in his speeches, because it was from the United States. The former GTE-Codetel was Canadian. Thus, Tejera believes it is a great surprise that Verizon now claims to have a company established in Canada that owns Verizon Dominicana, through another company in Luxembourg and one other country. "These seem to be strange mechanisms and legal technicalities, demonstrating low ethical standards towards a country and its people. There is a social and tax debt to our country. All seem to show that these are attempts to evade tax, seeking the support of the Double Taxation Treaty which has other objectives, because in 1976 there were no tax havens or paper companies," stated the diplomat.
Economist Hector Guiliani Cury gives reasons why he believes the companies should pay taxes on the capital gains in the Dominican Republic in an analysis on the topic published today in Hoy. He concludes that the sale of shares of one foreign branch to another is irrelevant regarding to tax obligations. "The capital gains are from a Dominican source, generated by a company resident in the country, and the Tax Code establishes that all income from Dominican source is subject to the payment of taxes," he writes. He says that the tax treaty between the DR and Canada also recognizes that the Dominican authorities have the right to charge taxes for income generated by a Canadian company with permanent residence and base and management in the country.
See http://www.hoy.com.do/app/article.aspx?id=86918
More... (http://www.dr1.com/index.html#8)
Economist Hector Guiliani Cury gives reasons why he believes the companies should pay taxes on the capital gains in the Dominican Republic in an analysis on the topic published today in Hoy. He concludes that the sale of shares of one foreign branch to another is irrelevant regarding to tax obligations. "The capital gains are from a Dominican source, generated by a company resident in the country, and the Tax Code establishes that all income from Dominican source is subject to the payment of taxes," he writes. He says that the tax treaty between the DR and Canada also recognizes that the Dominican authorities have the right to charge taxes for income generated by a Canadian company with permanent residence and base and management in the country.
See http://www.hoy.com.do/app/article.aspx?id=86918
More... (http://www.dr1.com/index.html#8)