The Treasury Department of Puerto Rico issued a “Circular Letter of Tax Policy” No. 16-06 (October 3, 2016) that establishes general procedures for the public release of taxpayer rulings and administrative determination letters on a “no name” or anonymous basis.
Historically, the practice of the Puerto Rico Treasury Department (PRTD) has been to answer inquiries of taxpayers and other interested parties, whenever appropriate in the interest of sound tax administration, as to the tax effects of their transactions by “private rulings.”
Guidance issued in 1999 (Circular Letter No. 99-01) establish what was then a general procedure for the issuance of formal responses to taxpayer inquiries, in the form of rulings and administrative determination letters.
In an effort to allow for disclosure of official interpretations by the PRTD as to the application of the Puerto Rico tax law, Circular Letter No. 16-06 was issued to amend Circular Letter No. 99-01. The new guidance provides that in the interest of sound public policy, rulings and administrative determination letters issued privately to taxpayers—such private rulings—will be made publicly available on a “no name” basis.
The new circular establishes the procedures to be followed by taxpayers and the PRTD in releasing the ruling letter to the public, including that:
For more information, contact a KPMG tax professional in Puerto Rico:
Rolando Lopez | +1 (787) 756-6020 | email@example.com
© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.