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 D - Sales and Use Tax (§§ 33241 — 33244) › § 33241 - Powers of the Secretary under §§ 32001 et seq. of this title

(a) For purposes of the application and administration of §§ 32001 et seq. of this title, and in addition to any other duties and powers established therein, the Secretary is hereby empowered to:
(1) Examine records, banking statements, documents, properties, business sites, premises, inventories, or any other material related to items, transactions, business, or activities subject to the taxes and fees established under §§ 32001 et seq. of this title. Any person in charge of any establishment, business sites, premises, or objects subject to examination or investigation shall facilitate any examination as required by the Secretary. Non-presence of the owner or head of an establishment shall not constitute a cause or a justification to prevent such examination from being conducted.
(2) Establish, through regulations, circular letter, information bulletin, or any other determination of a public nature that he/she issues to such effect, any conditions concerning the granting of merchant registration certificates, certificates of exemption from payment, or withholding of taxes imposed by §§ 32001 et seq. of this title. In order to ensure due compliance with the terms, provisions, and purposes of §§ 32001 et seq. of this title, the Secretary may impose, among any others which he/she may deem necessary, the following requirements and conditions:
(A) To require the taxpayer to file tax returns and reports and to keep accounting books and files, as well as any other document or evidence he/she may deem pertinent.
(B) To require, under the parameters provided by the Secretary, the posting of a bond in the amount of any tax, administrative fine, surcharge, or interest that could apply under §§ 32001 et seq. of this title.
(C) To require periodic inspections or oversight operations, or of any other nature (including by fiscal terminals, applications, or other electronic media), on, among others, points of sale, business sites, trailers, containers, storage areas, and exhibition areas related to taxable items.
(D) Require the merchant to post signs to duly notify and inform consumers on their right to receive a sales receipt indicating the Sales and Use Tax Oversight Program drawing number and impose penalties for failure to satisfy the requirement of posting such signs.
(3) Review, from time to time, the bonds posted by taxpayers pursuant to the provisions of §§ 32001 et seq. of this title, and require the increase in their amount or the posting of a new bond when, in his/her judgment, the bond posted does not suffice to secure payment of taxes plus interest, surcharges, and administrative fines that could be imposed on the bonded taxpayer.
(4) Inspect and oversee merchants by means of fiscal terminals, applications, mechanisms, devices, the Sales and Use Tax Oversight Program, or other electronic means, as well as require the installation, connection, and use of such equipment, applications, programs, mechanisms, or devices in business as required by the Secretary through regulations, circular letter, information bulletin, or administrative determination of a general nature. No person or merchant may alter, interfere, disconnect, or destroy the applications, equipment, programs, applications[sic], mechanisms, or devices required under this paragraph, or prevent, interfere, object to, or obstruct the access of the Secretary or any of his/her authorized agents to the installation, connection, inspection, or any other procedure conducted by the Secretary or his/her authorized agent in connection with the inspections and oversight operations authorized under this clause.
(5) Revoke the internal revenue license of any person who fails to comply with the provisions of §§ 32001 et seq. of this title or its regulations after having conducted administrative procedures pursuant to §§ 2101 et seq. of Title 3, known as the “Uniform Administrative Procedures Act of Puerto Rico”, the Secretary may, after having revoked such license, deny the issue of a new license for such period as he/she may deem necessary in his/her judgment. This action shall not constitute an impediment for any other court proceedings or administrative procedures authorized by law.
(6) Retain, for as long as necessary, any document obtained or furnished pursuant to §§ 32001 et seq. of this title, in order to use such documents in the investigations and procedures established under §§ 32001 et seq. of this title, or to be filed at the Department of the Treasury.
(7) Administer oaths and certify statements, tax returns, or other documents.
(8) Approve and adopt any such rules and regulations as necessary for the administration and application of §§ 32001 et seq. of this title.
(9) Delegate to any officer, official, or employee of the Department of the Treasury any such powers and duties as he/she may deem necessary and convenient to discharge any function or authority conferred under §§ 32001 et seq. of this title, except rulemaking authority.
(10) Limit the effects of his/her administrative decisions to taxable transactions after having taken such action in eminently contentious cases regarding the extent and nature of the sales and use tax or other factors that affect the amount imposed as tax.
(11) Reasonably extend the term fixed by §§ 32001 et seq. of this title to discharge any duty or obligation or to take action under a conditional exemption or otherwise if, in his/her judgment, imposing the restrictive term would entail a penalty or undue hardship under the circumstances pertaining to each case, and when granting such extension does not compromise the best interest of the Government of Puerto Rico, and when there is no indication as to negligence on the taxpayer’s part. Except as otherwise provided by this part of the Code, the Secretary may not exercise this discretionary power with regards to terms of payment. The Secretary may impose any such conditions as he/she may deem appropriate for granting the time extension.
(12) Enter into contract with any taxpayer in order for fiscal officers and officials to conduct, outside regular business hours, inspections and oversight operations on taxable transactions, and the amount charged for such services shall be covered into the funds of the Department of the Treasury for its operations.
(13) Appoint examining officials to conduct administrative hearings and render their reports and recommendations to the Secretary. The functions and procedures for these examining officials shall be established by regulations.
(14) Allow or require, through any such rules as he/she shall establish by circular letter or regulations, the filing of any tax returns, statements, or forms required under §§ 32001 et seq. of this title, as well as the payment of the sales and use tax established in such sections, electronically. In such cases, the taxpayer’s digital signature or electronic authentication mechanism shall be accepted as valid for all the purposes provided by the Code.
History —Jan. 31, 2011, No. 1, § 6054.01, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 178; June 30, 2013, No. 40, § 53.