A warning that measures favoring Mipymes are discriminatory
SD. Although the benefits of the measures taken by President Danilo Medina are recognized as favoring the Micro-, Small and Medium Companies (Mipymes), specialists in tax and administrative law warn that these could be in violation of the laws and in some cases produce unfair trade practices.
For the specialist in tax law, Edgar Barnichta, the fact that the government intends to buy from one type of business and not another, would constitute unfairness and violate free trade, at least until they establish clearly that the privilege will go to those companies that present proposals under the same conditions, both with regard to price, quality, and deliver time.
In relation to the announcement made by the government not to collect the anticipated payment of the Tax on the Transfer of Industrialized Goods and Services (ITBIS) or the selective taxes from the Pymes in function of accrual and not the perceived, Barnichta feels that the measure should be done through Congress, since the President does not have the authority to change the method of tax collection.
He said that he considered that this measure, the same as the one that reduces, until November, the payment of the tax on low cost housing is realistic and beneficial, but that both have a component of illegality. "These are two precedents that look very pretty but which are legally and constitutionally they are in violation," he said.
"You cannot favor one company over another....It is not fair that one company, just because it is Pyme is given special treatment that is not given to another that also sells to the government," he suggested after calling the measure discriminatory.
The lawyer also questions how the tax that the companies pay to their suppliers at the moment they acquire goods that are later transferred to the state will be handled.
In the meantime, another specialist in tax and administrative law, Juan Cruz, defended the authority that the President of the Republic had to favor one economic sector as long as he respects free trade.
He said that he felt that with the anticipated tax payment what they are doing is a change in the form of collecting and not a modification of the tax, so that it does not need to go to the Congress.
For the specialist in tax law, Edgar Barnichta, the fact that the government intends to buy from one type of business and not another, would constitute unfairness and violate free trade, at least until they establish clearly that the privilege will go to those companies that present proposals under the same conditions, both with regard to price, quality, and deliver time.
In relation to the announcement made by the government not to collect the anticipated payment of the Tax on the Transfer of Industrialized Goods and Services (ITBIS) or the selective taxes from the Pymes in function of accrual and not the perceived, Barnichta feels that the measure should be done through Congress, since the President does not have the authority to change the method of tax collection.
He said that he considered that this measure, the same as the one that reduces, until November, the payment of the tax on low cost housing is realistic and beneficial, but that both have a component of illegality. "These are two precedents that look very pretty but which are legally and constitutionally they are in violation," he said.
"You cannot favor one company over another....It is not fair that one company, just because it is Pyme is given special treatment that is not given to another that also sells to the government," he suggested after calling the measure discriminatory.
The lawyer also questions how the tax that the companies pay to their suppliers at the moment they acquire goods that are later transferred to the state will be handled.
In the meantime, another specialist in tax and administrative law, Juan Cruz, defended the authority that the President of the Republic had to favor one economic sector as long as he respects free trade.
He said that he felt that with the anticipated tax payment what they are doing is a change in the form of collecting and not a modification of the tax, so that it does not need to go to the Congress.