NewsWhore
11-17-2006, 02:30 PM
Mediation has given rise to possibility that the impasse between Verizon Dominicana and the Tax Department (DGII) could come to an end a lot sooner than most had expected. On Wednesday night, as reported in Diario Libre, President Leonel Fernandez met with officials from the telephone company and the American ambassador to the DR, Hans H. Hertell, to discuss the situation. The next day the court, which will be hearing the case between Verizon and DGII set 27 November as the date for the trial, supposedly leaving the door open for an out-of-court settlement. Diario Libre writes that Verizon would only pay US$250 million of the total US$518 million that the DGII was claiming in tax payments, and would then be allowed to sell the company as planned.
Press reports speculate that the large sum of money could slightly reduce the impact of the controversial fiscal reform.
The problem between DGII and Verizon arose when Verizon tried to sell the company, Verizon Dominicana, to the Mexican company America Movil, prompting DGII to block the sale of Verizon, claiming that the telephone company owed the government US$518 million in back taxes. A standoff between the two sides ensued and at one point DGII said that they would not consider an out-of-court settlement with Verizon.
The situation has reached its most delicate point because America Movil has given Verizon until the beginning of December to clean up its finances and complete the sale, or rescind the contract completely.
More... (http://www.dr1.com/index.html#6)
Press reports speculate that the large sum of money could slightly reduce the impact of the controversial fiscal reform.
The problem between DGII and Verizon arose when Verizon tried to sell the company, Verizon Dominicana, to the Mexican company America Movil, prompting DGII to block the sale of Verizon, claiming that the telephone company owed the government US$518 million in back taxes. A standoff between the two sides ensued and at one point DGII said that they would not consider an out-of-court settlement with Verizon.
The situation has reached its most delicate point because America Movil has given Verizon until the beginning of December to clean up its finances and complete the sale, or rescind the contract completely.
More... (http://www.dr1.com/index.html#6)