P.R. Laws tit. 13, § 392
(a) Voluntary statement of income.— Any person who on or before December 31, 1990, has received or accrued gross income subject to taxes pursuant to Act No. 91 of June 29, 1954, known as “Income Tax Act of 1954”, as amended, and has not filed the returns required for any taxable years ending on or before December 31, 1990, or having filed said returns has not stated said income in the return, shall have the option of filing a special return in which the total amount of the income is stated as well as the taxable years or the period during which said income was accrued or received.
(b) Taxes on estate and undeclared gifts.— Any person who on or before September 30, 1991, has failed to declare property subject to taxation pursuant to the provisions of §§ 881 et seq. of this title, known as “Inheritances and Gifts Act” or pursuant to Act No. 167 of June 30, 1968, known as “Estate and Gift Tax Act of Puerto Rico”, as amended, shall have the option of filing a special return in which said property and the market value thereof is stated at the time of the demise of the constituent or the date of the gift, as the case may be.
(c) Imposition of tax.— A twenty percent (20%) tax shall be imposed, collected and paid on the amounts determined and declared pursuant to subsections (a) and (b) of this section, excluding interest, penalties and surcharges.
(d) Voluntary statement of chattels tax.— Any person who on or before January 1, 1991, has possessed taxable chattels pursuant to Act No. 37 of October 4, 1983, and has not filed the return or returns required under said Act for any taxable year prior to January 1, 1991, or that having filed said returns, has not declared all the chattels possessed, shall have the option of filing a special return in which the value of the chattels is included and shall pay the amount of the tax applicable to said property in the corresponding tax years, excluding interest, penalties and surcharges.
(e) Income tax withheld and unpaid.— Any person who on or before December 30, 1991, has withheld or is bound to withhold income taxes in the payment of salary to his employees, in the payment of interest, dividends, income, salaries and other emoluments to non-resident individuals, corporations and partnerships, and in the payment of interest, dividends and other distributions of profits to resident persons, pursuant to the provisions of the Income Tax Act of 1954, and who has not filed the corresponding returns, or having filed the same has not declared the taxes withheld, or has not made the deposits corresponding to periods prior to September 30, 1991, shall have the option of filing a special return in which there shall be stated the tax withheld, or which should have been withheld in the corresponding years and periods, and paying said taxes at the time of filing the return, excluding interest, penalties and surcharges.
(f) Voluntary statement of excise taxes on articles introduced or manufactured in Puerto Rico, excises withheld and license fees.— Any person who on or before September 30, 1991, has introduced or manufactured and sold in Puerto Rico articles that would be taxable pursuant to the provisions of Act No. 5 of October 8, 1987, known as “Excise Act of the Commonwealth of Puerto Rico of 1987”, as amended, and that has not declared said articles, or that having declared them has not paid the total amount of the corresponding excise tax; or that has withheld or is bound to withhold excise taxes on specific taxable transactions under said section, and has not declared or withheld them, or having filed the return has not paid the total amount of said withholdings; or any person who should obtain or should have obtained an internal revenue license to deal with the articles covered by said section and has not paid the required fees, shall have the option of filing a special return covering any tax event prior to September 30, 1991, in which is stated the articles introduced or those manufactured and sold in Puerto Rico, their tax value and the corresponding tax, or the excise taxes withheld or the unpaid license fees, as the case may be. At the time of filing said return, the corresponding fees or excise taxes shall be paid, excluding interest, penalties and surcharges.
(g) Voluntary statement on volume of business.— Any person who has generated a volume of business subject to the payment of municipal license fees pursuant to §§ 651—652y of Title 21, and has not filed the return or returns required by said sections for the 1991—92 fiscal year and/or preceding fiscal years, or that having filed said returns has not declared the total taxable volume of business in the corresponding municipality, shall have the option of filing a special return which shall include the volume of business amounts and the taxable years or period during which said amount was generated, and shall pay the municipal license tax which results from the application of the tax rates corresponding to each year and each municipality, excluding interest, penalties and surcharges.
(h) Returns under investigation or in judicial procedures or cases requiring payment.—
(1) Those taxpayers whose returns are in the process of investigation by the Department of the Treasury or by the corresponding municipality, may avail themselves of the provisions of subsection (i) of this section with regard to the income detected or the items declared, thus paying the corresponding tax, and in such case the investigation procedures shall be dismissed.
(2) Those taxpayers whose returns are under an administrative procedure for notice of deficiency, or those who have been sent a final notice of deficiency, or those that have challenged a tax deficiency determined by the Secretary of the Treasury, hereinafter denominated as the Secretary, or by the Director of the Municipal Finance Office, hereinafter denominated as the Director, may avail themselves of the provisions of subsection (i) of this section, thus paying the total of the final determination made by the Secretary or the Director in the case.
(3) Those taxpayers who have been sent a notice and payment requirement may also avail themselves of the provisions of subsection (i) of this section.
(4) In the cases of those persons who have filed a judicial action objecting the payment of a tax deficiency determined by the Secretary or by the Director, over which no judgment has been rendered on the date of approval of this section, and that avail themselves of its provisions and pay the tax owed on the tax event in litigation, shall constitute sufficient cause for the filing and dismissal of that part of the suit that corresponds to the taxes paid under this section by the taxpayer who has filed the action.
(i) Release from the payment of interest, surcharges, penalties and other tax additions.— All taxpayers who have paid the total taxes owed to the Commonwealth of Puerto Rico or its municipalities, including debts under payment plans or payroll deductions on or before February 28, 1992, are hereby released from the payment of interest, surcharges, penalties and any other additions to taxes. The term “taxes owed” shall not include the first or second installment of the income tax corresponding to the year 1990. In the case of appraised receipts, the taxpayer shall pay the amount that appears as “principal” in those receipts even though the “principal” comprises only interest or penalties appraised under the applicable tax laws. The taxpayer shall indicate the taxable year or notice of taxes owed to which the payment shall be applied. In case the taxpayer does not notify this, the Secretary or the Director shall apply the same to the notices of taxes owed in strict order of maturity, that is, to the oldest debts, without interest, surcharges nor penalties. No partial payments shall be accepted for the same notice of taxes owed or taxable years, except in the case of real estate taxes, which may be divided into installments applicable to each semester. On those debts that have not been paid as of February 28, 1992, the interest, surcharges and penalties provided by law from the original date of maturity of the tax shall be levied. For the purposes of this section, the term “tax” shall include taxes on income, chattels, real property, inheritances, estates, gifts, excises, license fees, taxes withheld at source for any reason, including those levied by §§ 101 et seq. of Title 26 and municipal license and excise taxes.
(j) Option and payment of taxes.—
(1) The option to receive the benefits granted under this section may be exercised only if the taxpayer pays, the total amount of the taxes determined in the special statement which shall be filed before the Secretary or the Director, on or before February 28, 1992.
(2) The amount of the taxes that any person is bound to pay pursuant to the provisions of this section shall be paid in the Internal Revenue Collector’s Offices of Puerto Rico in the case of Commonwealth taxes, and in the corresponding municipality in the case of municipal license taxes. The payment shall be made or deposited, on or before February 28, 1992, in cash, certified check, manager’s check and/or money order exclusively.
(3) The payment made pursuant to the provisions of this section shall be voluntary and final for all purposes and shall not be subject to subsequent reimbursement and/or credit claims.
(k) Ineligibility to exercise this option.— The corporations exempted by virtue of §§ 10038 et seq. of this title, known as “Tax Incentives Act of Puerto Rico” as amended, or by any other law or regulation, shall not be eligible to avail themselves of the benefits of this chapter. The officials elected by the people as provided by the laws and the Constitution of the Commonwealth of Puerto Rico shall not be eligible to avail themselves of the benefits of this section.
(l) Definition of taxpayer.— For the purposes of this section, the terms “person” and “taxpayer” shall have the same meaning established in each of the applicable tax laws.
(m) Coordination between the Department of the Treasury and the municipal governments.—
(1) It shall be the duty of the municipal governments to assist and promote the steps for collection made by the Secretary of the Treasury, through the rendering of the resources, facilities and services needed to attain the most effective execution of the provisions of this section. Likewise, it shall be the duty of the Secretary of the Treasury to facilitate to the municipal governments the information that is necessary to them to attain the maximum benefit in the implementation of this chapter. For these purposes, the mechanisms needed between these two bodies to allow for the most effective coordination possible of the steps to be carried out by them shall be created immediately.
(2) The Secretary of the Treasury shall remit to the municipalities, within the briefest possible period, the proportion of the chattel tax corresponding to each municipality, pursuant to what is established in the corresponding Commonwealth and municipal tax laws, and whatever may be established in the regulations approved by virtue of this section.
(n) Inspection of special returns.—
(1) Confidentiality of documents.— The special returns filed pursuant to the provisions of this section shall not be deemed public documents, and shall only be subject to inspection and examination by the Secretary or by the Director, as the case may be.
(2) Exception.— Notwithstanding what is stated above, when any of the Legislative Bodies determines that there is a substantial public interest, and in any case, upon a resolution passed to such effects, that expressly authorizes a legislative committee to inspect and examine any statement, the Secretary or the Director, as the case may be, shall allow said Committee, convened in an executive session, to examine the ones that have been required and shall assist in the interpretation and analysis of the information contained or stated therein.
(3) Penalties for divulging information.— It shall be illegal for any official, employee or person under contract with the Commonwealth of Puerto Rico or its municipalities, to divulge or reveal in any way other than that provided by law, to any person, all or part of the contents of any special return. Any person who violates the provisions of this clause shall incur a misdemeanor and upon conviction thereof, shall be punished with a fine which shall not exceed five hundred (500) dollars, or with imprisonment for a term not to exceed six (6) months in the penal institution designated by the Corrections Administration, or both penalties, at the discretion of the court.
The officials, employees or persons under contract with the Government of the Commonwealth of Puerto Rico who violate the provisions of this section, in addition to the above stated sanctions, shall also be subject to removal or dismissal from the office or job they hold or to the cancellation of their contract.
(o) Rules and regulations.— The Secretary of the Treasury shall adopt and promulgate the rules and regulations that are needed for the administration of this section, which shall take effect upon notice to the Governor of the Commonwealth of Puerto Rico and through the publication of a notice of the adoption thereof in two (2) newspapers of general circulation, without the need to comply with the provisions of §§ 2101 et seq. of Title 3, known as “Uniform Administrative Procedures Act of the Commonwealth of Puerto Rico”.
(p) Immunity.—
(1) Granting of immunity.— The taxpayers who avail themselves of the provisions of this section shall not be subject to the civil or criminal penalties provided in the tax laws, nor to the provisions of Title 33 that establish offenses for violations to tax laws.
(2) Scope of the immunity.— The immunity granted in this section shall be limited to the amounts determined and declared pursuant to this chapter, that correspond to the taxable years or periods covered by the option granted.
(q) Exclusion.— The taxpayers against whom criminal procedures have been initiated for any tax offense may not avail themselves of the provisions of this section. Neither shall those taxpayers convicted of tax fraud avail themselves of its provisions, or those whose source of income is illegal, nor those whose activities or business can be identified as criminal activities or patterns or organized crime within the concept of §§ 971 et seq. of Title 25, known as “Act Against Organized Crime”.
(r) Creation of special funds.— The funds collected by the virtue of the provisions of this section shall be covered into a Special Fund to be used regardless of a specific fiscal year, to cover deficiencies in the budget of the present fiscal year as a result of the impact of the recession of the United States on the economy of Puerto Rico, and for expenses of the criminal justice area connected mainly with fines imposed by the federal court having to do with the corrections system in Puerto Rico, among other things. The Secretary of the Treasury, with the concurrence of the Director of the Office of the Budget and Management, shall issue a certification of deficiency of collections in the General Fund as a prior step for the transfer of this Special Fund and into the General Fund.
History —Oct. 25, 1991, No. 88, §§ 1—18.