2023 Laws of Puerto Rico › TITLE TWENTY-THREE - Public Planning and Development (§§ 1 — 11273) › PART II - Economic Development (§§ 231-241 — 695i) › Chapter 34 - Act for the Development of the Film Industry (§§ 571-577a — 577a) › Subchapter VII - Miscellaneous Provisions (§§ 577 — 577a) › § 577 - Denial, revocation and limitation of benefits

(a) Denial and reconsideration. — The Commissioner may deny any application for license when he/she determines, in his/her sound discretion and taking into consideration the facts set forth, and in view of the nature and condition of the project, the budget, the number of employees, the amount of the payroll, the total investment, the location of the project, its environmental impact, or other factors that, in his/her judgment, merit said determination, that the purposes pursued in this chapter are not being met.
The applicant once notified of a denial by virtue of the provisions of this section, may request the Commissioner for a first and sole reconsideration. On reconsidering the application, the Commissioner may consider any other term or condition that does not exceed the benefits provided by this chapter, and that in his/her sound judgment is necessary to guarantee the best interests of Puerto Rico and the purposes for the development of the film industry that are promoted in this chapter, but the Commissioner may not impose conditions that alter the benefits granted by this chapter.
(b) Bases and procedures for revocation. — The Secretary may impose fines and/or revoke the tax benefits granted under this chapter to a film entity, or its officials, directors, developers or promoters, after allowing the film entity to appear and be heard, pursuant to the provisions of §§ 2101 et seq. of Title 3. The sums to be paid in the cases in which a fine is imposed in lieu of the revocation of the benefits granted, shall be determined by the Secretary through regulations. If tax credits are revoked pursuant to this section, the amount of the tax credits thus revoked shall be deemed to be income taxes owed for the taxable year in which the revocation takes place, to be paid by the investors affected by the revocation in two (2) installments, the first of which shall become due on the deadline for filing the income tax return for the year in which the revocation takes place, with no time extension, and the second installment shall become due on the deadline for filing the tax return, with no time extension, for the following year.
The Secretary may determine that the revocation and/or fine in question shall be effective from the date the exempted business is found guilty of the violation on which said determination is based, in the following cases:
(1) When the film entity fails to comply with any of the obligations that have been imposed by fiscal laws, by this chapter, the regulations promulgated thereunder, or the terms contained in its license, as the case may be;
(2) when the benefits of this chapter have been obtained through misrepresentation with regard to the nature of the eligible business, the use to be given to the property of the business, or any other fact or circumstance that, in whole or in part, motivated the approval of the concession.
History —Dec. 24, 1999, No. 362, § 22.