2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 8 - Additional Income and Internal Revenue Tax Provisions (§§ 1881 — 2272v) › PART II - Additional Taxes (§§ 2021 — 2272v) › Chapter 213 - Tax on Unfair Profiteering by Excise Taxpayers (§§ 2231 — 2244) › § 2233 - Unfair profiteering, profit and cost defined

For the purposes of this chapter, “unfair profiteering” shall be understood to be the net income derived or which may be derived from the crediting or reimbursement of excises (including taxes under the Alcoholic Beverages Act, Subtitle 14 of this title) collected by the Secretary of the Treasury of Puerto Rico illegally or unduly, or in excess of the correct amount, whenever the person to whom said credit or reimbursement was made or may be made passes said excises to another person through the sale or transfer of the articles taxed, either by including the excises in the selling or transfer price, and as a part thereof, or otherwise; Provided, That it shall be presumed that the taxpayer has passed the excises to another person in such amount as may result to be the difference between the selling price of the articles subject to taxation which may be or may have been the object of credit or reimbursement, and the sum: (1) of the cost thereof and (2) of the average profit of the amount in question.
“Unfair profiteering” shall also be understood to be the net income derived or which may be derived from the credit or reimbursement of excises (including taxes under the Alcoholic Beverages Act) collected by the Secretary of the Treasury of Puerto Rico illegally or unduly, or in excess of the correct amount, whenever the person to whom said credit or reimbursement was made or may be made collects, either totally or partially, the excises under an insurance contract, but in this case the unfair profiteering shall be only computed on the basis of such part of the excises really collected by virtue of said insurance contract.
The term “profit” means the difference between the selling price of the articles and the cost thereof, and the term “average profit” means the average difference resulting between the selling price and the cost price of similar articles sold by the taxpayer during the three (3) years immediately preceding that on which the initial impost of the tax or excise is made, except that if during any part of said three (3) years the taxpayer was not engaged in business or his books during any part of said three (3) years are inadequate for obtaining satisfactory information, the average profit of the taxpayer for such part of the three (3) years shall be, when necessary for a fair comparison, that which may be determined by the Secretary of the Treasury of Puerto Rico for persons or commercial enterprises engaged in similar businesses and under similar circumstances.
The term “cost” means (as regards articles manufactured or produced by the taxpayer) the cost of the materials used in the manufacture or production of said articles and, in the case of articles purchased by the taxpayer for resale, the price which for said articles may have been paid by the taxpayer.
History —Apr. 6, 1946, No. 286, p. 664, art. 1, § 3.