US EditionA new federal report scrutinizes Puerto Rico’s tax incentives luring wealthy Americans
The GAO report highlights IRS oversight gaps in Puerto Rico’s tax incentives, which may cost hundreds of millions annually and question benefits for local residents.
- On Friday, the U.S. Government Accountability Office released a report after an audit that ended this month, scrutinizing Puerto Rico tax incentives and documenting over 5,800 investor and nearly 3,900 export decrees.
- The incentives, created under Fortuño, provide for more than 5,800 resident investor decrees and nearly 3,900 export service decrees, with some critics noting potential oversight gaps.
- The GAO reported IRS oversight gaps as exemptions could total hundreds of millions annually; until this year, the IRS lacked complete Social Security number data and found 179 taxpayers lacking residency evidence.
- The IRS said it agrees with GAO recommendations and has begun coordinating annual data requests, while Puerto Rico has tightened compliance and raised the $10,000 donation requirement amid $2.5 billion foregone incentives.
- Amid local criticism, the U.S. Government Accountability Office said Puerto Rico's economy shows little growth since incentives began, while U.S. Senate Committee on Finance Democratic staff launched an independent investigation.
22 Articles
22 Articles
Puerto Rico’s fiscal incentives that thousands of wealthy Americans have taken advantage of in the United States’ territory for more than a decade are under scrutiny after federal legislators released a report this Friday from the Office of Government Responsibility (GAO). The report found that Puerto Rican island exemptions could amount to hundreds of millions of dollars a year and urged the Internal Revenue Service (IRS) to improve its oversig…
Associated Press News
A new federal report scrutinizes Puerto Rico's tax incentives luring wealthy Americans
Puerto Rico tax incentives that have lured thousands of rich Americans to the U.S. territory for over a decade are under scrutiny after federal legislators released a new report by the U.S.
San Juan, Dec. 12 (EFE).- Democrats from the House's Natural Resources Committee released a report this Friday that reveals that Puerto Rico's tax exemption for ultra-rurals could cost US taxpayers “hundreds of millions of dollars a year.” The Government Accountability Office (GAO) report also states that there is little evidence that these exemptions are generating economic benefits for the people of Puerto Rico.
A new GAO report indicates that Act 60 allows investors and the ultra-wealthy to evade federal taxes, while the IRS fails to monitor compliance. Democratic members of Congress warn of the limited economic impact on Puerto Rico and the loss of revenue for the U.S.
nelpr.com
Es Noticia PRWASHINGTON – A report by the U.S. Office of Comptroller General concluded that contributory exemptions granted to high-income individuals under Puerto Rico's 60th Act could cost federal taxpayers hundreds of millions of dollars a year without clear evidence of economic benefits for the island, went beyond Friday. The study, requested by Democratic legislators of the Federal Chamber's Natural Resources Committee, examined the impact of these ince…
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