Click here to close now.

Welcome!

News Feed Item

Attorney Joe Garza Releases Warning to Investors Considering Puerto Rico Tax Shelters

DALLAS, TX -- (Marketwired) -- 07/03/14 -- Puerto Rico has attracted several wealthy investors as legislation passed in 2012 finally gains traction. 2012 was the year the Puerto Rican government enacted acts 20 and 22, which offer huge tax benefits to new businesses and residents on the island. The Puerto Rican government estimates that at least 250 individuals will apply for the programs during the current year, but experts warn that moving one's life and business to the U.S. commonwealth is a risky choice.

"If you move to Puerto Rico, you may retain more wealth, but you'll sacrifice safety and quality of life," says Joe B. Garza, a prominent tax attorney based in Dallas who serves clients worldwide. Puerto Rico's current murder rate is more than six and a half times higher than the overall rate in the U.S., according to Fortune Magazine. The New York Times reported a total of 983 homicides in 2010. That is largely to do with the island's dismal poverty rate and the fact that Puerto Rico is a major hub for drug trafficking.

With Acts 20 and 22, Puerto Rico's government hopes to change all of that. "We're catching up to Ireland and Singapore -- you can shelter income legally, and legally in a good way," Alberto Bacó Bagué, Puerto Rico's secretary of economic development and commerce, told the New York Times. The island has already attracted several small to mid-sized financial firms owned by millionaire executives from the mainland.

But even if the tax incentives gain the kind of traction that the Puerto Rican government hopes for, relocating could lead to a significant amount of uncertainty. "There's no guarantee that Acts 20 and 22 will remain untouched," warns Garza. Just a few years ago, the federal government did away with Puerto Rico's tax incentives that exempted U.S. manufacturing companies from paying taxes on profits made on the island. Garza explains, "Puerto Rico is going through a time of instability. To make matters worse, Congress has already set a precedent for quashing the island's ambitious tax policies back in 2006."

Acts 20 and 22 are definitely ambitious. Act 20 -- The Export Services Act -- lowers the earnings tax on transplanted businesses to a flat 4% and guarantees a total exemption from tax on dividends and profit distributions. Act 22 -- known as the Individual Investors Act -- exempts new residents from paying Puerto Rico income tax on all dividends, interests, and capital gains accrued after the individual has become a resident of the island. On top of all this new legislation, Puerto Rican residents (with the exception of federal employees) are already exempt from paying federal income tax.

"Hopefully Puerto Rico's economy will begin to pick up because of this new legislation," says Joe Garza. "But for now, the island has a long way to go, especially in reducing its crime rate. If investors are preparing to live in Puerto Rico for at least 183 days of the year, they should understand that the island may not protect their safety as well as it does their assets."

About:

Attorney Joe Garza is the senior partner at Garza & Harris, a firm specializing in tax and estate planning in Dallas, Texas. Garza & Harris provides clients in over 27 countries with expertise in asset protection and business planning. Garza brings over 30 years of legal experience to his firm. Learn more about Garza & Harris at garzaharris.com

Press Contact:

Garza & Harris
2300 Three Gallery Tower 13155 Noel Rd.
Dallas, TX 75240
Tel: (214) 373-3300
Web: garzaharris.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations migh...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of...
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI In...
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that Secure Infrastructure & Services will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Secure Infrastructure & Services (SIAS) is a managed services provider of cloud computing solutions for the IBM Power Systems market. The company helps mid-market firms built on IBM hardware platforms to deploy new levels of reliable and cost-effective computing and hig...
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development...
Live Webinar with 451 Research Analyst Peter Christy. Join us on Wednesday July 22, 2015, at 10 am PT / 1 pm ET In a world where users are on the Internet and the applications are in the cloud, how do you maintain your historic SLA with your users? Peter Christy, Research Director, Networks at 451 Research, will discuss this new network paradigm, one in which there is no LAN and no WAN, and discuss what users and network administrators gain and give up when migrating to the agile world of clo...
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, it is now feasible to create a rich desktop and tuned mobile experience with a single codebase, without compromising performance or usability.
Containers are revolutionizing the way we deploy and maintain our infrastructures, but monitoring and troubleshooting in a containerized environment can still be painful and impractical. Understanding even basic resource usage is difficult – let alone tracking network connections or malicious activity. In his session at DevOps Summit, Gianluca Borello, Sr. Software Engineer at Sysdig, will cover the current state of the art for container monitoring and visibility, including pros / cons and liv...
SYS-CON Media announced today that CloudBees, the Jenkins Enterprise company, has launched ad campaigns on SYS-CON's DevOps Journal. CloudBees' campaigns focus on the business value of Continuous Delivery and how it has been recognized as a game changer for IT and is now a top priority for organizations, and the best ways to optimize Jenkins to ensure your continuous integration environment is optimally configured.
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the...
"In the IoT space we are helping customers, mostly enterprises and industry verticals where time-to-value is critical, and we help them with the ability to do faster insights and actions using our platform so they can transform their business operations," explained Venkat Eswara, VP of Marketing at Vitria, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
The most often asked question post-DevOps introduction is: “How do I get started?” There’s plenty of information on why DevOps is valid and important, but many managers still struggle with simple basics for how to initiate a DevOps program in their business. They struggle with issues related to current organizational inertia, the lack of experience on Continuous Integration/Delivery, understanding where DevOps will affect revenue and budget, etc. In their session at DevOps Summit, JP Morgenthal...
"We provide a web application framework for building really sophisticated web applications that run on a browser without any installation need so we get used for biotech, defense, and banking applications," noted Charles Kendrick, CTO and Chief Architect at Isomorphic Software, in this SYS-CON.tv interview at @DevOpsSummit (http://DevOpsSummit.SYS-CON.com), held June 9-11, 2015, at the Javits Center in New York