On March 1, 2018, the Treasury issued Informative Bulletin 18-08 (“the Bulletin”) with the purpose of extending the due date for the Informative Returns (Declarations) for the 2017 tax year, until March 6, 2018.   The extension covers only the Declarations indicated below: Form 480.6A "Informative Return - Income Not Subject to Withholding" Form 480.6B "Informative Return - Income Subject to Withholding" Form 480.6D "Informative Return - Exempt and Excluded Income and Exempt Income Subject to Alternate Basic Contribution" Form 480.6B.1 "State of Annual Reconciliation of Income Subject to Withholding" Form 480.5 "Summary of Informative Returns" Form 480.7 "Informative Return - Individual Retirement Account" Form 480.7B "Informative Return - Educational Contribution Account" Form 480.7C "Informative Return - Retirement Plans and Annuities"  ...

On February 12, 2018, the Supreme Court of Puerto Rico published their most recent tax case, Demeter International v. Secretario de Hacienda, 2018 TSPR 21. In summary, the Puerto Rico Department of Treasury (“the Treasury”), notified tax deficiencies to Demeter International Inc. (“the Taxpayer”), for the tax years 1996 through 2003. The Taxpayer filed a lawsuit against the Treasury, however, the parties signed a Closing Agreement (“the Agreement”) with the purpose of ending the lawsuit. The Agreement provided that the Taxpayer would make a payment of $32,020 for all taxable years, including the years of 1996 to 2003, and the deficiencies would be considered paid, settled and closed. Likewise, it was provided that at the time of signing the Agreement,...

The Treasury issued on January 30, 2018, the Internal Revenue Circular Letter No. 18-01 to establish the procedures and documents required to claim the deduction of mortgage interest paid or accumulated by a person other than the mortgage loan debtor or co-debtor. To be eligible for this deduction, the payment must have been made on a mortgage loan secured by the taxpayer’s qualified residence and the following documentation will be required: Informative Return – Mortgage Interest (Form 480.7A): issued by the mortgage loan debtor or co-debtor. Evidence that the taxpayer is the legal owner of the qualified residence or the person who would suffer the damage of a foreclosure, as applicable. For the last, a Sworn Statement should be acceptable...