The Dominican Republic’s Supreme Court overturned a San Pedro Civil Court ruling which ordered Cemex to pay the municipality of Quisqueya RD$893 million ($19.8 million), or 3 percent of the company´s gross income from 2011 to 2013, reported the Dominican Today.
The court determined that Cemex Dominican Republic pays all applicable taxes as an industrial company, for which it cannot be taxed for the same activity twice, as the Quisqueya city council claimed. It said since Cemex Dominican Republic pays income tax on its net profit, it doesn’t have to pay a city tax on the same tax base because it would create double taxation banned by the Constitution.
The ruling adds that the city council based its claim on an erroneous interpretation of Article 284 of Municipal Law 176-06.
