(Este articulo es viejo y fue traducido del español Perdonen los errores. Pueden buscar el original en El Dia)
June 16, 2010.
They fear for the tax benefit
The proposal would prevent CFC claim credits
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| Luis Fortuño Governor traveled to Washington for legislation that would take clear benefits to corporations of foreign control. |
by Joseph A. Delgado /jdelgado@elnuevodia.com
WASHINGTON - The government of Puerto Rico yesterday expressed a clear concern with the mood in Washington in favor of tax system changes that may threaten the profits of corporations from foreign control, which depends on the vast majority of manufacturing enterprises with based on the Island.
Like Pedro Pierluisi, Resident Commissioner, Luis Fortuño Governor said that the changes discussed this week in the Senate - as part of the cameral 4213 - will not have a significant negative effect on the business of the CFC on the island/
But Fortuño came to Washington to the fact that both the White House and congressional Democrats sectors have yet another law, probably before the end of the year, which according to the Government would remove large benefits to the CFC.
As part of a bill that extends tax initiatives, such as the increase in the reimbursement they receive Puerto Rico and the Virgin Islands by the federal excise on rum importers, the Senate discussed a proposal that would prevent CFC claim tax credits for payments made to locally or loss, unless that year repatriated income of such jurisdiction.
Although the Government of Puerto Rico has minimized the impact on the Isle of these changes, there are industries that have been concerned the legislation would also affect multinationals like Walmart, McDonalds and Home Depot.
Fortuño met yesterday on the issue with Congressman Charles Rangel (New York), who chaired the committee that has primary jurisdiction over issues of taxation, and Senators Mary Landrieu (Louisiana) and Rob Wyden (Oregon).
Governor Rangel proposed to the White House create a working group-independent apparently already discussed the key issues of the Island-to be on the table alternatives that drive economic sectors in Puerto Rico and the Government's opposition to new changes the CFC system.
Since 2009, the White House has considered close tax havens used by companies abroad to avoid having to pay more federal taxes. "We want to prevent legislatation without us being part of the process. We are being proactive, "said Fortuño, who believes the White House and Congress must" remember that every job that is created in Puerto Rico was an American job. "
The Government wants to bring back any assessment allows for discussion changes to Section 243 of the Internal Revenue Code and the inclusion of Puerto Rico in an area of economic development.
With the amendment to the 243 industrial and political sectors have pushed U.S. manufacturing exempt from paying taxes on dividends to its parent.Meanwhile, pursuing economic development zones give tax breaks to companies established in jurisdictions with limited economic resources.
For the resident commissioner in Washington, Pedro Pierluisi, the doubts raised by some business executives CFCs in Puerto Rico are consonant with the positions taken by the U.S. parent corporations, but not related to the effect of business these manufacturing on the Island
"The headquarters are fighting the case and it is normal that these executives also are against the changes," said Pierluisi. The 4213 draft also extends for one year reduced from 35% to 32% in the tax rate paid by manufacturers who do business as domestic enterprises in Puerto Rico, extended unemployment benefits and promotes the creation of summer jobs, among other things .
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