2023 Laws of Puerto Rico › TITLE TWENTY-THREE - Public Planning and Development (§§ 1 — 11273) › PART VI - Tourism (§§ 6001 — 6982i) › Chapter 151 - Tourism Development (§§ 6001 — 6326) › Subchapter II - Exemptions; Administration (§§ 6011 — 6018) › § 6016 - Denial, revocation and limitation of benefits

(a) Denial and reconsideration. — The Director may deny any petition filed under § 6017 of this title when he/she determines, in his/her sound discretion and taking into account the facts presented, and in view of the nature and condition of the physical facilities, the number of the jobs, 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 such a decision.
Once a petitioner has been notified of a denial by virtue of the provisions of this section, he/she may request a first and only reconsideration from the Director, pursuant to the terms and conditions established by the regulations that the Puerto Rico Tourism Company promulgates for these purposes, pursuant to the provisions of §§ 2101 et seq. of Title 3. Upon reconsidering the petition, the Director 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 needed to ensure the best interests of Puerto Rico and the tourism development purposes of this chapter.
(b) Basis and procedures for revocation. — The Director may impose fines, suspend and/or revoke the tax benefits granted hereinunder after the person who enjoys the same is allowed to appear and be heard, pursuant to the provisions of §§ 2101 et seq. of Title 3. The amounts to be paid in those cases in which a fine is imposed in lieu of a suspension or revocation the benefits granted shall be determined by the Director through regulations. The Director may determine that the suspension, revocation and/or fine in question shall be effective from the date the exempted business is found guilty of the violation upon which the determination is based, in the following cases:
(1) When the exempted business fails to comply with any of the obligations that have been imposed by this chapter, by the regulations promulgated hereinunder, or by the terms contained in its grant, as the case may be.
(2) When the tax-exempt business suspends its operations for more than sixty (60) days without the authorization of the Director. The Director must give his/her authorization, prior to a suspension for a period greater than sixty (60) days, when said suspension is motivated by causes beyond the control of the exempted business.
(3) In the case of a hotel, condohotel or Puerto Rican parador, when the concessionaire operates the same in violation of the provisions in effect of the Tax-Exempt Hotels Minimum Requirements Code or Puerto Rican Paradores Minimum Requirements Regulations. The Director may mitigate this revocation by limiting its effects to the suspension of the benefits of this chapter for periods of no less than one (1) year. The suspension periods shall be taken into account upon computing the period of duration of the benefits of this chapter. Provided, That in the event a Puerto Rican parador were to be separated from the paradores program sponsored by the Puerto Rico Tourism Company, the tax exemption and all other benefits that said Puerto Rican parador enjoys shall be suspended for the term of its separation from the program. A Puerto Rican parador may renegotiate its grant under this chapter if it complies with the provisions of § 6014 of this title, and any other applicable requirement of this chapter.
(4) When the benefits of this chapter have been obtained through false or fraudulent representations 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 grant.
(5) When the exempt business has failed to comply with the tax payment related to the room occupancy rate as provided by the Commonwealth of Puerto Rico Room Occupancy Rate Tax Act, §§ 2271—2272v of Title 13, in three (3) or more occurrences (not necessarily consecutive) during a fiscal year, in compliance [with] the provisions of said sections.
History —Sept. 10, 1993, No. 78, § 8; Jan. 8, 1994, No. 3, § 5; Sept. 9, 2003, No. 272, § 64, eff. 180 days after Sept. 9, 2003.