Wednesday, April 20-26, 2022 - // no. 156
Puerto Rico and the Caribbean
www.theweeklyjournal.com
Inflation stats are questioned P6 PR Comic Con, a Pop-Culture Summit P7 Congress seeks to boost Computerchip industry P9
In search of the
definitive tax reform Previous attempts have created a complex taxation web
D
Juan A. Hernández, The Weekly Journal
Canine park of dreams P15
jhernandez@wjournalpr.com
epending on which economist or accountant you ask, there has been four or five tax reforms enacted in Puerto Rico since 2006, which is also influenced by how these professionals define the term “tax reform.” Invariably, all previous attempts to reform Puerto Rico’s Tax Code have fell short of their intended purpose because instead of considering the code as a whole, legislation focused on specific aspects of it, under the guise of promoting economic development.
According to economist Sergio Marxuach, this incomplete and misnamed tax reforms have created “a complex web of tax rates layered on top of multiple credits, deductions, exclusions, and exemptions that in many cases are not justified. In an effort to bring some order, Governor Pedro Pierluisi announced last October the creation of an advisory group for the purpose of simplifying and improving the island’s tax system. “Yes, the tax system must be reformed. The quarterly reports required to small business must be simplified even more… Since we are a part GO TO PAGE 4