2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART VII - Administrative Provisions, Procedures, Interests, Penalties, and Additions to Taxes (§§ 33001 — 33423) › Chapter 1065 - Powers of the Secretary (§§ 33201 — 33244) › Subchapter A - General Provisions (§§ 33201 — 33217) › § 33215 - Expenses related to detection of fraud and undervaluation of taxes

(a) In general.—
(1) The Secretary is hereby authorized to pay such amounts as he/she may deem necessary, under the criteria he/she establishes through regulation, circular letter, or other administrative determination of a general nature, in order to:
(A) Detect tax undervaluation and insufficiency, or
(B) detect and prosecute any persons guilty of violating the Code or in complicity or connivance for such purpose, in those cases in which such expenses are not otherwise covered by law.
(2) Any amount payable under this subsection, shall be payable from the revenues generated by amounts collected by virtue of the information furnished, and any amounts thus collected shall be available for the payments provided in this subsection.
(b) Compensation for informants.—
(1) General rule.— If the Secretary institutes an administrative or a judicial action as described in subsection (a) of this section, based on information brought to the attention of the Secretary by an individual, such individual shall receive, subject to the provisions of clause (2) of this subsection, a compensation of at least fifteen percent (15%), but not more than thirty percent (30%) of the amount collected (including penalties, interest, additions to taxes, and other additional amounts) by such action (including any action related thereto) or by any transaction as a consequence of such action. The determination of the compensation granted by the Secretary shall depend on the extent to which such individual made a substantial contribution to such action.
(2) Compensation for non-substantial contributions.—
(A) In general.— In the event that the action described in clause (1) is an action whereby the Secretary determines that such action was mostly based on information from specific allegations (other than the information furnished by the individual described in clause (1) of this subsection) as a result of an administrative or court hearing, a government report, a hearing, audit or investigation, or the press, the Secretary may grant such amount as he/she may deem appropriate, but in no case shall the amount be greater than ten percent (10%) of the amount collected (including penalties, interest, additions to taxes, and other additional amounts) or by any transaction as a consequence of such action, taking into account the importance of the information furnished and the importance of the role of such individual and his/her legal counsel in such action.
(B) Exception when the individual is the original source of information.— Paragraph (A) shall not apply when the information that causes the action described in clause (1) to be filed was originally furnished by the individual described in clause (1).
(3) Reduction or denial of compensation.— If the Secretary determines that a compensation claim under clause (1) or (2) of this subsection is claimed by an individual who planned and filed the actions that led to tax undervaluation and insufficiency as described in subsection (a)(2) of this section, the Secretary may reduce or eliminate such compensation. If such individual is convicted of criminal conduct arising from his/her role, as described in the preceding sentence, the Secretary may eliminate such compensation.
(4) Right to contest a determination.— Any determination with respect to compensation under clauses (1), (2), and (3) may be contested by filing a complaint with the Office of the Secretary of Adjudicative Procedures of the Department, made under §§ 2101 et seq. of Title 3, known as the “Uniform Administrative Procedures Act of the Commonwealth of Puerto Rico”. Such complaint shall be filed within thirty (30) days following the date the Secretary notifies such determination.
(5) Application under this subsection.— This subsection shall apply to:
(A) Any action of a taxpayer, but in the case of an individual, only if the individual’s gross income exceeds two hundred thousand dollars ($200,000) for any taxable year subject to such action, and
(B) if the taxes, penalties, interest, additions to taxes, and other additional amounts in dispute exceed two million dollars ($2,000,000).
(6) Additional rules.—
(A) Unnecessary contracting.— Entering into a contract with the Department of the Treasury is unnecessary to receive compensation under this subsection.
(B) Representation.— Any individual described in clause (1) or (2) may be represented by an attorney or a specialist.
(C) Information.— No compensation may be granted under this subsection unless such information is provided under penalty of perjury.
History —Jan. 31, 2011, No. 1, § 6051.15, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 174.