In January, specifically the 27th, Direccion General de Impuestos Insternos, similar to Internal RevenueService enacted an special resolution converting Costasur Domnicana, S.A. in a sort of Agency in charge of collectingthe property tax or IVSS from owners. Therefore IVSS (property tax) is changing its form to a withholding tax. It is still a levy or contribution over the property but from this year Casa de Campo would be responsible for the collection of the levy.
onsequently Costasur may charge the luxury tax (IVSS) directly to those clients with balances outstanding with Internal Revenue Office (even if they don’t want to pay the IVSS) because Costasur is liable to pay the property tax on its expenses. In other words Costasur is liable (jointly and severally liable) for owner’s obligations. The purpose of the resolution then, is to enable enforcement of legislation 18-88 relative to property tax or IVSS.
We may say: “then I am not going to pay the property tax through them I am going to do it by myself”, because I don’t consider appropriate to live my property on their free will. Or perhaps because you may think that they may retain the funds (I don’t think they can) and then do not report it to Internal Revenue Office. The answer is that yes you can pay the property tax directly to Internal Revenue Office. However in my opinion from now on it is almost impossible to default property tax payment; provided that Costasur is bound by the resolution above mentioned, in a short period of time if they are required to make a payment on behalf of an owner that went into default, they may cut out the services to this client, such as telephone, electricity, if said owner does not fulfill his obligations with respect to the property tax.
The resolution is no doubt against the Dominican constitution for a lot of reasons, but only in the event of a judgment from the Supreme Court against the resolution owners are bound by said, and so far I don’t see a loophole to bypass it.
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