The Legislature of Puerto Rico recently enacted, and the Governor signed into law, Act 123-2016 of August 5, 2016 amending the Judiciary Act of Puerto Rico by creating a Specialized Tax Court in the Superior Court of San Juan.

The main purpose for its enactment seems to be the growing need of knowledgeable judges to adjudicate the increasing number of cases and controversies arising under the different tax statutes of Puerto Rico, including crimes and violations set forth therein. These statutes include: the internal revenue code, municipal property tax law (CRIM), the insurance code, the economic incentive acts, tourism development act, and municipal license tax statute. However, Act 123 also directs the Specialized Tax Court to attend to “economic crimes” related to violations of the banking law, the associations of savings and loans law (cooperativas) and the uniform securities law.

The Specialized Tax Court will also entertain civil cases resulting from any tax imposed in favor of Puerto Rico or its instrumentalities, or any matter relating to tax credits or tax concession grants.

The statute provides that the judge assigned to the Specialized Tax Court should be knowledgeable in finance, accounting and taxation.

AMG has a very active litigation practice in tax cases and looks forward to continuing the same before the Specialized Tax Court.

Corporate & Tax Department Members include: Francisco J. García - This email address is being protected from spambots. You need JavaScript enabled to view it.; Ricardo Muñiz – This email address is being protected from spambots. You need JavaScript enabled to view it.; César Rosario Vega – This email address is being protected from spambots. You need JavaScript enabled to view it.; Caridad Muñiz Padilla – This email address is being protected from spambots. You need JavaScript enabled to view it.; Katarina Stipec-Rubio – This email address is being protected from spambots. You need JavaScript enabled to view it..