2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 3 - General Provisions (§§ 621-639 — 1100a) › Chapter 71 - Municipal License Taxes (§§ 621-639 — 652y) › § 651p - Assessment and collection of deficiency—Assessment of tax in jeopardy

(a) Power to assess.— If the Finance Director believes that the assessment or collection of a deficiency is in jeopardy due to delay, he shall immediately assess said deficiency together with all the interest, additional amounts or tax additions provided by §§ 651–652y of this title, and shall notify and demand payment thereof notwithstanding the provisions of subsection (a)(10) of § 651o of this title.
(b) Assessment prior to deficiency notice.— If an assessment under subsection (a) of this section was made before notice was served on the person under § 651o(a) of this title of any determination with respect to the deficiency referred to in such assessment, the Finance Director shall notify the deficiency to the person within thirty (30) days after the assessment, pursuant and subject to the provisions of § 651o(a) of this title.
(c) Scope and amount of assessment.—
(1) Assessment after deficiency notice.— An assessment under subsection (a) made after the person is notified of the deficiency subject to such assessment pursuant to the provisions of subsection (a) of § 651o of this title, shall in no way affect the procedure established in subsection (a) of § 651o, nor deprive the person of the remedies provided therein with respect to said deficiency. When the assessment is made after an administrative hearing is held on the deficiency subject to said assessment, but before notice of the final determination has been given by the Finance Director, he/she shall notify said final determination to the person within thirty (30) days following the date of said assessment. Furthermore, when the assessment of a deficiency under subsection (a) of this section is made after judgment is entered by the Court of First Instance on the merits of said deficiency, the assessment shall only be made with respect to the amount of said deficiency determined by the judgment of the court.
(2) Amount assessable before opinion is rendered by the Court of First Instance.— The assessment referred to in subsection (a) of this section may be made with regard to a greater or lesser deficiency than that which has been notified to the person under subsection (a) of § 651o of this title, regardless of the provisions of subsection (f) of § 651o which prohibits the determination of additional deficiencies, nor the fact of whether or not an appeal has been filed before the Court of First Instance in connection with the deficiency notified. The Finance Director or his/her representative may reduce said assessment or any unpaid portion thereof to the extent he/she deems that the assessment is excessive, at any time before said court renders its opinion. The Finance Director shall notify the Court of First Instance of the amount of such assessment or reduction, if the appeal is filed before said court before the assessment is made or is subsequently filed, and the court shall have jurisdiction to redetermine the total amount of the deficiency and all the amounts assessed at the same time with regard thereto.
(d) Bond to stay collection.— When a deficiency is assessed pursuant to subsection (a), the person may obtain a stay of the collection of all or any part of the amount thus assessed within ten (10) days after notice and demand of payment by the Finance Director, by posting bond to the Finance Director for such amount (not greater than the amount with regard to which the stay of collection is desired, plus interest on said amount computed for the period of one additional year at twelve percent (12%) per annum and with such security as the Finance Director deems necessary, which bond shall respond for the payment of that part of the amount whose collection has been stayed thereby, which is not reduced:
(1) By the Finance Director’s final determination on the deficiency if the person does not appeal said final determination before the Court of First Instance, or if having appealed, the Court renders judgment declaring itself without jurisdiction to take cognizance of the matter once the judgment is final, or
(2) by final judgment of the Court of First Instance on its merits.
(e) Bond under subsection (a) § 651o of this title.— When an appeal of the final determination of the Finance Director on a deficiency assessed pursuant to subsection (a) is taken before the Court of First Instance, the person shall not have to post the bond required by subsection (a) of § 651o of this title if, in the discretion of the Finance Director or the court, the bond posted under subsection (d) of this section secures the full payment of the license tax under litigation.
(f) Deficiency determined by the Court of First Instance.— If an appeal has been filed before the Court of First Instance from the final determination of the Finance Director on a deficiency assessed under subsection (a) of this section, then, as soon as the amount that should have been assessed is determined by final judgment of said court, any unpaid amount whose collection has been stayed by bond, shall be collected upon notice and demand by the Finance Director, and any remaining balance of the assessment shall be cancelled. If the amount collected exceeds the amount determined as the amount that should have been assessed, sucn excess shall be accredited or refunded to the person as provided in § 652f of this title, after deducting any credit owed to the municipality by the person without it being necessary to file any claim for said excess.
(g) In case of appeal.— The applicable provisions of subsection (b) of § 651o of this title shall govern the appeal taken by the person from the judgment of the Court of First Instance on the merits of a deficiency that shall have been assessed under subsection (a) of this section.
(h) In absence of an appeal.— If the person does not file a complaint in the Court of First Instance against the final determination of the Finance Director on a deficiency assessed under subsection (a), any unpaid amount whose collection was stayed by the bond shall be paid upon notice and demand by the Finance Director, with interest at twelve percent (12%) per annum, computed from the date of the assessment made under subsection (a) of this section, until the date of the notice and demand made under this subsection.
History —July 10, 1974, No. 113, Part 1, p. 371, § 17; Nov. 17, 1992, No. 93, § 11.