Friday, December 15, 2017

Puerto Rico gov calls talk of full domestic jurisdiction absurd

By on December 6, 2017

SAN JUAN – Gov. Ricardo Rosselló said Wednesday that Congress is discussing an issue that has nothing to do with the discussion of the federal tax reform bill, that Puerto Rico be classified as a domestic jurisdiction for the matter of manufacturing companies and that it be considered a domestic jurisdiction like a state, including to pay federal taxes.

“That goes beyond the scope of the bill because the federal tax code would have to be amended. I haven’t heard the resident commissioner and other colleagues say that directly. But that is what has been hinted. For me, that is the epitome of the colony. For me, to be asking that without providing adequate or equal resources to other jurisdictions without having representation and without equal treatment; for me it is simply absurd,” Rosselló replied to questions from the press.

Legislator warns of consequences were Puerto Rico a domestic jurisdiction

“What’s happening, I believe, is that in this discussion of tax reform, different things are being mixed,” he added.

The govenor said the only issue under discussion about the tax reform legislation is the classification of either foreign or domestic for the purposes of taxes paid by companies with production outside U.S. territory.

Puerto Rico’s resident commissioner, Jenniffer González; House Speaker Carlos Méndez; and Senate president, Thomas Rivera Schatz are lobbying for the island to be considered as domestic jurisdiction in all areas even if it results in having to pay federal taxes.

Legislative resolution demands Puerto Rico jurisdiction be addressed in US tax reform

(By Álex Fernández Rivas)

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