Category: Announcements

Qualified Opportunity Zones: An Opportunity to Spur Investments in Puerto Rico

By: Fernando Goyco-Covas The Tax Cuts and Jobs Act of 2017 grants certain United States federal income tax benefits to taxpayers that invest all or a portion of their capital gains in certain economically distressed areas of the United States (“Qualified Opportunity Zones”). For more information, please click on the following link: https://www.pmalaw.com/wp-content/uploads/2018/11/Newsletter-Qualified-Opportunity-Zones.pdf

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PMA founding partner Néstor Méndez becomes the first Puerto Rican elected to the Board of Trustees of the US Supreme Court Historical Society

PMA founding partner Néstor Méndez becomes the first Puerto Rican elected to the Board of Trustees of the US Supreme Court Historical Society.  He also was the first Puerto Rican to preside the Foundation of the Federal Bar Association and Chair its Fellows and currently presides the Puerto Rico Supreme Court Foundation. For more information, click on the following link: Primer Puertorriqueño en presidir junta jurídica El Nuevo Día 6 21 18

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THE RESERVATION OF POWERS IN A TRUST: DOES IT AFFECT THE TRUST’S PROTECTION BEFORE CREDITORS OF THE SETTLOR?

The trust is an autonomous estate that results from the act by which a person, named as settlor, transfers certain assets or rights to another person, named as trustee, to be administered for the benefit of third parties, named as beneficiaries, according to the provisions of the deed of constitution of trust.  For more information, click on the following link: Click here

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PUERTO RICO SUPREME COURT FINDS AGENTS, OFFICERS AND SUPERVISORS NOT PERSONALLY LIABLE FOR RETALIATION CLAIMS

In Caballer Rivera v. Nidea Corporation, 199 DPR __ , 2018 TSPR 65 (April 19, 2018), the Puerto Rico Supreme Court held that an employer’s managers and supervisors are not personally liable for alleged acts of retaliation under Puerto Rico Acts No. 69 of July 6 (sex discrimination), 1985 and No. 17 of April 22, 1988 (sexual harassment), (the “Acts”). For more information, click on the following link: Click here

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US SUPREME COURT HOLDS THAT OVERTIME AND MINIMUM WAGE EXEMPTIONS IN THE FLSA MUST BE GIVEN A “FAIR READING”, NOT A NARROW INTERPRETATION AS PREFERRED BY THE DEPARTMENT OF LABOR.

April 3, 2018. On April 2, 2018, the US Supreme Court held in Encino Motorcars, LLC v. Navarro et al. that service advisors at car dealerships are exempt from the payment of overtime under Section 13(b)(10)(A) of the Fair Labor Standards Act (“FLSA”), which applies to “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles, trucks, or farm implements.” For more information, click on the following link: Click here

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PROPOSED LABOR LAW REFORM

On March 21, 2018, Governor Ricardo Rosselló provided some details about a new Labor Law Reform.  The new Labor Law Reform proposes to lower, on a still unspecified date, the vacation and sick leave accrual of private employees to 7 days per year.  In three years from the enactment of the Reform, the Christmas bonus will not be obligatory and Act 80 of May 30, 1976, the Unjust Dismissal Act, will be eliminated. The purpose of these proposed changes is to increase the rate of labor participation in Puerto Rico, which is currently around 40%, compared to an average of 63% in the US. You can view the article by clicking on the following link:  Click here to download  

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Amendments to the Puerto Rico Private Equity Funds Act

Act 93 of August 8, 2017 (“Act 93”), which is effective immediately, amends Act 185- 2014, as amended, known as the Puerto Rico Private Equity Funds Act (“Act 185”), to clarify the scope and meaning of certain provisions in accordance with its legislative history of facilitating entrepreneurship and the deployment of private capital in Puerto Rico. The principal changes introduced by Act 93 deal with certain defined terms, eligibility requirements, and tax deductions related to an investment in a private equity fund (each, a “Fund”) under Act 185. You can view the complete article by clicking on the following link: Click here 

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FAFAA issues rules for use of certain income

On March 22, 2017, the Disbursement Authorization and Tax Concession Committee (the “Committee”) issued Resolution 2017-01 (the “Resolution”) establishing that a Granted Credit (as defined below) may be sold by its Holder (as defined below) or claimed against the income tax of the Holder for the 2016 Tax Year without additional restrictions than those imposed by the Puerto Rico Internal Revenue Code of 2011, as amended (the “Code”), or the special laws applicable to the Granted Credit.

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