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) › § 652f - Refunds and credits

(a) Authorization.—
(1) Excess payment.— When payment has been made in excess of any license tax levied hereunder, the amount of said excess payment shall be credited against any tax or installment thereof enforceable at that time against the persons and any balance shall be immediately refunded to the person.
(b) Limitations.—
(1) Prescription period.— Unless a claim of credit or for refund is filed by the person within four (4) years from the date the return was submitted by the person or within three (3) years from the date the license tax was paid, no credit or refund shall be granted or made after the expiration of any one of said periods which lapses subsequently. If the person shall have failed to submit a return, then no credit or refund shall be granted after three (3) years from the date on which the tax was paid, unless prior to the expiration of said period, the person shall file a claim for said credit or refund.
(2) Amount of credit or refund.— The amount of credit or refund shall not exceed the portion of the tax paid—
(A) If the person filed a return, and the claim was filed within four (4) years after the date of the return during the four (4) years immediately preceding the filing of the claim.
(B) If a claim was filed and (i) no return was submitted, or (ii) if the claim was not filed within four (4) years from the date the return was submitted by the person during the three (3) years immediately preceding the filing of the claim.
(C) If no claim was filed and the credit or refund is made within four (4) years from the date the person submitted his return, during the four (4) years immediately preceding the granting of the credit or refund.
(D) If no claim was filed, (i) no return was submitted, or (ii) the credit or refund is not granted within four (4) years from the date the return was submitted by the person, during the three (3) years immediately preceding the granting of the credit or refund.
(3) Exceptions in case of waiver of prescription period.— If within the period prescribed in clause (1) of this subsection for the filing of a claim for credit or refund, both the Finance Director and the person shall have agreed in writing pursuant to the provisions of subsection (b) of § 651s of this title to extend beyond the period fixed in § 651r of this title the period within which the Finance Director may make an assessment, then the period within which a claim for credit or refund may be filed or a credit or refund be granted or made, if no claim has been filed, shall be the period within which the Finance Director may make an assessment pursuant to said agreement or any extension of said period and six (6) months later, except that the provisions of clause (1) of this subsection shall apply to any claim filed or credit or refund granted or made before entering into such agreement. The amount of credit or refund shall not exceed the total amount of the portions of taxes paid:
(A) During three (3) years immediately preceding the execution of said agreement, or if said agreement was executed within four (4) years from the date on which the return was submitted within four (4) years immediately preceding the execution of said agreement;
(B) after the execution of the agreement, and prior to the expiration of the period within which the Finance Director may make an assessment pursuant to the agreement or to any extension of said period, and
(C) during six (6) months after the expiration of said period, except that the provisions of clause (2) of this subsection shall apply to any claim filed or to any credit or refund granted, prior to the execution of the agreement. If any portion of the tax should be paid after the expiration of the period within which the Finance Director may make an assessment pursuant to said agreement, and if no claim for credit or refund be filed, after the date of said payment and before six (6) months shall have elapsed after the expiration of said period, then a credit or refund may be granted or made, if a claim therefor be filed by the person within six (6) months from the date of said payment, or if no claim shall have been filed, within said period of six (6) months after payment, if the credit or refund be granted or made within said period, but the amount of credit or refund shall not exceed the portion of tax paid during six (6) months immediately preceding the filing of the claim, or, if no claim was filed (and the credit or refund be granted after six (6) months from the expiration of the period during which the Finance Director may make said assessment), during six (6) months immediately preceding the granting of credit or refund.
(4) Declaration considered as submitted on date of expiration.— For the purposes of this subsection, a declaration submitted before the last day prescribed by law to submit the same, shall be considered as submitted said last day. For purposes of clauses (2) and (3) of this subsection and for the purposes of subsection (c) of this section, an advanced payment of any part of the tax made on the date on which said declaration was filed shall be considered as made on the last day fixed by law for the payment of the tax, or if in the case of a person who has chosen tax payment by installment, on the last day fixed for the payment of the first installment. For the purposes of this clause, the last day fixed by law to submit the declaration or to pay the tax, shall be determined without taking into consideration any extension granted to the person.
(c) Excess payment determined by the Court of First Instance.— If the Court of First Instance should determine that there does not exist any deficiency, and should further determine that the person has made an excess payment of tax with respect to the accounting year as to which the deficiency was determined by the Finance Director, or should determine that there exists a deficiency, but that the person has made an excess payment of tax with respect to said tax year, the Court of First Instance shall have power to determine the amount of said excess payment and said amount shall, when the decision of the Court of First Instance becomes final, be credited or refunded to the person. No such credit or refund of any portion of the tax shall be made unless the Court of First Instance determines in its decision:
(1) That said portion was paid:
(A) Within three (3) years before the claim was filed, after notice of deficiency was mailed, or after execution of an agreement between the Finance Director and the person pursuant to § 651s of this title to extend beyond the period fixed in § 651r the period within which the Finance Director may assess the tax, whichever occurs first; or
(B) within four (4) years before the claim is filed after notice of deficiency is mailed, or after the agreement is executed, whichever occurs first, if the claim was filed, the deficiency notice mailed, or the agreement executed, within four (4) years from the date on which the person submitted his declaration; or
(C) after the execution of said agreement, and before the expiration of the period within which the Finance Director might make an assessment pursuant to said agreement or to any extension of said period; or
(D) after service by mail of the deficiency notice.
History —July 10, 1974, No. 113, Part 1, p. 371, § 34; Nov. 17, 1992, No. 93, § 24.