Advocating for improvements in the Law on Trusts

The president of the Dominican-Canadian Chamber of Commerce, Eduardo Domínguez, and the partner from the firm of Salas Piantini & Asociados, José Salas, yesterday both underscored the contributions and progress achieved with Law 189-11 on the Mortgage and Trust Market, and recommended that improvements be made to it.

Salas indicated that one of the things that the law should take into consideration is that pension funds could be invested in trusts and investment funds. He stated that that would give a tremendous boost to the market, lending it greater dynamism.

He also added that the subject of withholding of 10% of profits ought to be clarified, because the existing interpretation by the authorities is distorted and results in double taxation.

Another topic Salas addressed was the division of dividends. He indicated that the basis on which it ought to be calculated should be the accounting basis. "That is not clear in the law, because there is one basis which is fiscal and another basis which is accounting, and since trusts and investment funds are exempt from the payment of income tax, the basis should be the accounting basis."

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