2023 Laws of Puerto Rico › TITLE TWENTY-NINE - Labor (§§ 1 — 3004) › PART III - Social Security (§§ 611 — 726f) › Chapter 47 - Employment Security Act (§§ 701 — 717) › § 714 - Penalties

(a) Misrepresentation to obtain benefits.— Any person who knowingly makes a statement or provides any information on any material fact that is false, or knowingly conceals some material fact with intent to defraud, to obtain some benefit or an increase thereof under this chapter or under the Employment Security Act of any state or the federal government or a foreign government, for himself or for any other person, shall incur the penalty prescribed by Section 166(a) of the Penal Code of Puerto Rico on aggravated misappropriation, for the appropriation of property and public funds belonging to the Government of the Commonwealth of Puerto Rico, obtained by him of said other person; and each of said false statements and information and concealment of material facts shall constitute a separate offense; Provided, however, That said penalty shall not be imposed in any case which has been disqualified under § 704(b)(7) of this title.
(b) Misrepresentation by employment unit or employer.— Any employment unit, employer, or any officer or agent of an employment unit or employer, as well as any other person, who gives a false statement or information knowing them to be false, or who knowingly conceals a material fact so as to defraud an individual with the purpose of avoiding or reducing the payment of benefits to which such an individual would otherwise be entitled, or to avoid becoming or remaining an employer subject to this chapter, or to avoid or reduce any taxes or other payments required from an employment unit under this chapter or under the employment security act of any state or of the federal government, or of any foreign government, or who willfully fails or refuses to pay any taxes or make other payment or to furnish any reports required hereunder or to produce or permit the inspection or the acquisition of copies of reports as required hereunder, shall be sanctioned with a term of imprisonment of one (1) year or with a fine of up to five thousand dollars ($5,000), or both penalties at the discretion of the court and each instance of providing information or statements, or of concealment of a material fact, and each day such failure or refusal to provide the information required continues shall constitute a separate offense.
(c) In addition to any other penalty fixed by this chapter, if any person violates or attempts to violate, evades, or attempts to evade any of the provisions of this chapter, including misrepresentation, or if the person knowingly causes another person to violate clause (1), (2), (7) or (10) of § 708(g) of this title, or any other provision of this chapter regarding the determination of the tax rate designation, shall be imposed the following penalties:
(1) If the person is an employer, such employer shall be immediately designated with the maximum tax rate under this chapter for the taxable year in which said violation or attempted violation occurred and for the three (3) taxable years following said year. However, if the business or commercial enterprise is under the maximum tax rate for any of the three (3) taxable years, then an additional two percent (2%) penalty shall be imposed to the maximum tax over the taxable wages for said year(s).
(2) This employer shall also reimburse fifty percent (50%) of the taxes unpaid or which he/she has attempted not to pay plus the interest and penalties resulting from said amount.
(3) If a person other than an employer knowingly acquires a business or commercial enterprise solely or primarily for the purpose of obtaining a lower tax rate, such person shall be subject to a civil fine of ten thousand dollars ($10,000) or to the payment of fifty percent (50%) of the taxes unpaid or which he/she has attempted not to pay, whichever is higher, and said action shall be deemed to be a felony with a maximum penalty of three (3) years of imprisonment or a fine of fifteen thousand dollars ($15,000), or both penalties, at the discretion of the court.
(4) If the agency finds that any person, commercial entity, or tax return preparer (as defined in § 708(g)(14) of this title) knowingly urges or advises another person or commercial entity to violate any of the provisions of this chapter, any of the above shall be imposed a penalty of five thousand dollars ($5,000) or ten percent (10%) of the amount resulting from any tax deficiency, with the respective penalties and interest, whichever is greater, in addition to any other penalties provided by this chapter, and shall be guilty of a felony and be sanctioned with a maximum term of imprisonment of five (5) years or with a fine of twenty-five thousand dollars ($25,000), or both penalties, at the discretion of the court.
(d) Noncompliance with a subpoena.— Any person who without a just cause fails to appear or refuses to appear and testify or answer any inquiry or to produce books, papers, correspondence, memoranda, and other records, if being able to do so, in response to a subpoena of the Secretary or of his/her duly authorized representative or of an arbiter, shall be sanctioned with a maximum term of imprisonment of thirty (30) days or with a fine of not less than two hundred dollars ($200) nor greater than one thousand dollars ($1,000), or both penalties, at the discretion of the court, and each day such a failure or refusal continues shall constitute a separate offense.
(e) The penalties under these subsections shall be in addition to any other penalty and be subject to the same collection procedures that apply to due and unpaid taxes. The penalties shall be paid to the agency within thirty (30) calendar days after the determination is made and be accredited to the Unemployment Fund. The determination of a penalty shall be final unless the employer files an appeal within thirty (30) days after the determination is made. The procedures for appeals shall be carried out pursuant to § 706(f) of this title.
(f) Violation of law, rules and regulations.— Any person who wilfully violates any provision of this chapter or any order, rule, or regulation promulgated hereunder, whose violation is made unlawful or whose observance is required by this chapter, and for which a penalty is not prescribed in this chapter or in any other applicable statute, shall be punishable by imprisonment in jail not to exceed one year or by a fine not to exceed one thousand dollars ($1,000), or by both penalties, in the discretion of the court; and each day such violation continues shall constitute a separate offense.
(g) Unauthorized disclosure of information.— If any official or employee of the Department of Labor and Human Resources, in violation of the provisions of § 713(k) of this title, makes any disclosure of information obtained from any employing unit or individual in the administration of this chapter or if any person who has obtained any list of applicants for work, or of claimants or recipients of benefits under this chapter, uses or permits the use of such list for any purpose not authorized by § 713(k) of this title, shall be punished by imprisonment in jail for a maximum term of one year or by a fine not to exceed one thousand dollars ($1,000), or by both penalties, in the discretion of the court.
History —June 21, 1956, No. 74, p. 328, § 14, renumbered as § 15 and amended on Dec. 22, 1960, No. 1, p. 1, §§ 13, 17; July 26, 1979, No. 4, p. 924, § 10; Sept. 16, 2005, No. 114, § 6, retroactive to July 1, 2005.