The process usually starts without any prior warning with a written notice by the DGII to the taxpayer assessing the taxpayer's liability under a particular statute. The liability could arise from not filing a specific tax return – such as the yearly income tax return, monthly tax return for VAT or a specific declaration in regards to transfer pricing rules – from not paying a specific tax, such as the property tax, corporate asset tax, VAT, capital gains tax, etc., or from the DGII disputing a filed return. The notice establishes a new deadline for the pending tax return or the specific amount of tax that is due, assessing the taxpayer with the corresponding fines for the non-compliance.
Upon receipt of this notice, the taxpayer can immediately either start to negotiate a settlement with the DGII or file an objection within 20 days, attaching all the necessary documents and evidence. Once the objection is filed, the payment of the taxes and penalties is suspended until the DGII has ruled on the objection. Upon request by the taxpayer, the DGII can grant an additional 30 days to the taxpayer to substantiate the objection. The DGII has to decide on the objection within three months. After this internal administrative ruling, the DGII can start the collection procedure and attach the assets of the taxpayer.
This procedure applies to all taxpayers and all taxes. The general statute of limitations for tax collection is three years, starting one day after the filing or the payment was due.