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) › § 651i - Requirement of audited financial statements for business volume tax returns

(a) Date for statement.—
(1) General rule.— On or before the effective date of this act, any person, or his/her authorized agent, subject to the payment of the license tax shall be bound to file a statement of the volume of business, as provided in §§ 651–652y of this title, on or before five (5) working days subsequent to April 15 of each taxable year.
Any person, or his/her authorized agent, subject to the payment of the license tax shall be bound to file, under oath taken before any municipal or Commonwealth of Puerto Rico official duly authorized therefor, a statement on the form or model established by the Commissioner of Municipal Affairs through regulations approved to such effect. If the business volume of the person subject to the payment of license tax does not exceed three million dollars ($3,000,000) [sic].
(i) Sales volumes of less than three million dollars ($3,000,000) per year.— A copy of the pages or supplements in which the gross income and operating expenses are itemized as submitted to the Secretary of the Treasury for income tax return purposes. These documents shall be accompanied by a certification by the taxpayer to the effects that the same are a true and exact copy of those filed with the Department of the Treasury on the income tax return. The above certification, that shall be accompanied with the statement of volume of business, shall be prepared on a form designed and approved by the Office of the Commissioner of Municipal Affairs, and the same shall be part of the statement. Any statement which fails to comply with this legal requirement shall be deemed as not filed.
The information contained in the income tax return shall be deemed confidential and all penalties, violations and restrictions related to the use of said information, as provided by the Internal Revenue Code of 1994, as amended, shall apply to the municipal employees and to any person having access to said information.
(ii) The sales volume in excess of three million dollars ($3,000,000) per year.— Financial statements audited by a certified public accountant licensed by the Commonwealth of Puerto Rico. For the purposes of §§ 651–652y of this title, by audited financial statements it shall be understood to be: a general balance sheet, a profit and loss statements and a cash flow.
Every statement must be accompanied by the documents described below when pertinent, except those business operations exempted by the municipality through regulations pursuant to the provisions of §§ 651–652y of this title.
(2) Extension.— The Finance Director may grant an extension to submit the statement through those rules and regulations that the Commissioner of Municipal Affairs may prescribe. The granting of the extension does not exempt the person from the payment of the municipal license tax, therefore he/she must estimate his/her volume of business and pay it on the date prescribed in § 651j of this title. Except in the case of persons who are outside of the country, no extension shall be granted for a period greater than six (6) months.
(3) A municipality, at its discretion, shall demand that any person, enterprise or institution subject to the payment of license taxes must, at the time of filing the business volume statement, show evidence of being current in the payment of real and personal property taxes, or of having a payment plan in effect. Evidence must also be presented indicating that a duly filled personal property income tax return has been filed, if the property is of such a nature.
(b) With whom to file tax returns.— Tax returns shall be filed with the Finance Director where the main office is located, and one copy of said statement shall be filed with the Finance Director of each municipality in which the person has received or earned income subject to the municipal license tax imposed under authority of §§ 651–652y of this title.
History —July 10, 1974, No. 113, Part 1, p. 371, § 10; Nov. 14, 1974, No. 4, Part 2, p. 718, § 1; Dec. 8, 1989, No. 19, p. 580, § 1; Aug. 30, 1991, No. 82, § 6; Nov. 17, 1992, No. 93, § 5; Dec. 19, 1995, No. 240, § 1; Aug. 10, 1997, No. 63, § 1; Aug. 23, 1997, No. 101, § 1; Aug. 20, 2004, No. 218, § 1; Aug. 1, 2008, No. 147, § 9.