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
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
"We are a leader in the market space called network visibility solutions - it enables monitoring tools and Big Data analysis to access the data and be able to see the performance," explained Shay Morag, VP of Sales and Marketing at Niagara Networks, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...