Puerto Rico violated your tax Act 22 decree?
NOW you can fight back.
This is an additional fundraiser to continue our Class Action Lawsuit originally fundraised in July of 2020. https://fundrazr.com/b1esic
Our contracted litigation firm, Adsuar Muñiz (“AMG”), will be petitioning the Puerto Rico Supreme Court to make a determination on our case. The total legal fees are $40,000, but we have some leftover funds from the previous fundraiser (around $13,000). We are fundraising the difference as detailed further below.
A summary of the case from AMG is as follows:
In their brief Petitioners maintain and allege that Act 40-2020 is unconstitutional to the extent that it undermines a contractual obligation between the Government of Puerto Rico and the holders of tax exemption decrees, and/or an unconstitutional taking of plaintiffs rights. Petitioners further argued that nothing prevented the State from prospectively establishing new terms and conditions for the decrees that will be granted, including establishing a tax or the so called “fee” of $5,000.00 to file the annual report. However, the holders of decrees prior to the approval of Act 40-2020, have the contractual right to full compliance of the contract and to honor all the terms of their respective decrees, as opposed to the unilateral and retroactive application of new terms and conditions imposed by the Government of Puerto Rico. It is also argued that, unless Act 40-2020 is declared unconstitutional as requested by Petitioners in the Complaint, this would be the functional equivalent of giving a blank check to the Government of Puerto Rico to establish contributions of its own choosing and additional taxes against the Petitioners, despite the clear content of their decrees and their constitutional rights.
Petitioners also stress on the fact that the unconstitutionality of Act 40-2020 is a matter of first impression for the PR Supreme Court. Thus, the case not only involves important matters of constitutional law and public interest, but it also presents a great opportunity for the PR Supreme Court to address the correct interpretation and application of a relatively new statute, in light of the provisions and rights afforded by the Constitution. Moreover, the case involves matters of law and applying legal principals to facts that are not in controversy, which militates in favor of solving the case on its merits at this stage of the proceedings. Petitioners insist that the writ of Certiorari is therefore warranted, and affirmatively request the PR Supreme Court to issue a Declaratory Judgment declaring Section 89(d) of Law 40-2020 unconstitutional. This interlocutory appeal also presents an important opportunity to solve the case and controversy at hand, with unquestionable practical effects on the Petitioners. In doing so, Petitioners also address the fact that there are indeed other less onerous mechanisms available to achieve the government’s objective with Act 40-2020, which do not imply the unreasonable impairment of the contractual and constitutional rights of the Petitioners.
Petitioners finally argued that, in the alternative, it is more than meritorious and necessary for the PR Supreme Court to grant at least the petition for preliminary injunction to protect the proprietary interest of individual resident investors in the face of non-compliance by the State, while the controversy over the constitutionality of Section 89(d) is resolved on its merits by the Court. Petitioners claim for injunctive and equitable relief meets all the applicable criteria to issue a provisional order aimed at preventing the collection of the $5,000.00 imposed against the Petitioners through the approval of Section 89(d) of Law 40-2020. It is further argued that, as recently as this same week, Petitioners were notified by the US Bankruptcy Court for The District of Puerto Rico regarding the approval of the Government´s Bankruptcy Plan. This dissipate any doubt that, although the damages suffered by plaintiffs in the absence of injunctive relive has economic implications, the same is definitively irreparable and there is no other adequate remedy under the law. Since this a matter of strict application of the law, the PR Supreme Court is in the same position to issue declaratory judgment or of reviewing the request for a preliminary injunction as any of the inferior Courts. Because of this and for reasons of procedural economy, it is appropriate that the PR Supreme Court be the one to review the appealed determination at this very moment, and to resolve the controversy before it on its merits altogether, once and for all.
HOW THE MONEY WILL BE USED
The raised funds will be used as follows:
- $27,000 - AMG Legal Fees for PR Supreme Court Filing
- $5,000 - Two Years of Organization Tax & Compliance Fees
- $960 - 3% Credit Card Processing Fees
$13,000 is leftover from the original fundraiser which will be used for AMG Legal Fees.
Depending on your Tax Decree language, a donation may be eligible for your annual donation requirements.
All donations are tax deductible under section 1101.01 per Puerto Rico Internal Revenue Code. The organization does not have 501(c)(3) status at this time.
E-MAIL LIST
Enter your email here to be updated directly from the Board: http://eepurl.com/g4tM0T
ABOUT AMG
Since its founding in 1994 the San Juan law firm of Adsuar Muñiz Goyco Seda & Perez-Ochoa, P.S.C. has provided comprehensive business-related legal services to companies throughout Puerto Rico, and to business interests based in the continental United States or abroad that have financial interests in Puerto Rico. AMG's team of lawyers brings years of experience and a wide range of professional credentials to every matter we handle.
AMG has prominent tax attorneys, including a former Assistant Secretary of the Puerto Rico Treasury Department. Members of the firm are frequent lecturers and speakers about tax and complex litigation matters. AMG’s tax attorneys regularly negotiate with the Puerto Rico Treasury Department and have a successful track record of tax litigation. Likewise, AMG has substantial expertise in class action litigation, and is uniquely positioned to assist in the prosecution of this effort.
LEGAL TEAM ASSIGNED TO OUR CASE
- Eric Perez Ochoa, Shareholder - Co-Chair of the Litigation and Trial Practice Department
- Luis Oliver-Fraticelli, Shareholder - Co-Chair of the Litigation and Trial Practice Department
- Ricardo Muñiz, Shareholder – Chair of the Tax Law Department
-
Fabian
Rodriguez Torres, Junior Partner
- Miguel Carbonell, Associate
- Glorimar Irene Abel, Associate
ABOUT COALICIÓN DE RESIDENTES POR UN GOBIERNO INTEGRO
We are citizens of Puerto Rico holding the Commonwealth of Puerto Rico accountable for for violating its promises and breaching its contracts. More information about the board members can be found at residentespr.org
