Puerto Rico initiates first audit of controversial law 22 amid fraud concerns

In a recent meeting of the Comisión de Hacienda, Asuntos Federales y Junta de Supervisión Fiscal, significant discussions centered around the controversial Ley Veintidós and its implications for tax compliance in Puerto Rico. The meeting highlighted concerns regarding fraudulent practices associated with the law, particularly involving certain CPA firms accused of promoting schemes that exploit its provisions.

One key point raised was the need for increased scrutiny and accountability in the enforcement of Ley Veintidós. Officials acknowledged that while some firms operate responsibly within the law, others have been implicated in fraudulent activities that tarnish the reputation of the legislation. The IRS has flagged Ley Veintidós as a major issue for tax evasion, prompting calls for a more aggressive approach to oversight.

In a proactive move, the department announced the initiation of the first comprehensive audit of Ley Veintidós in nearly a decade. This audit will involve a thorough review of compliance reports and will seek to verify the residency claims of individuals benefiting from the law. Officials emphasized the importance of this audit in restoring integrity to the tax system and ensuring that only eligible individuals receive benefits.

The meeting concluded with a commitment to enhance the auditing process, which has historically relied on CPAs as auxiliary auditors. This shift aims to strengthen the enforcement of tax regulations and address the challenges posed by fraudulent practices. As the audit progresses, stakeholders are hopeful that it will lead to greater transparency and accountability within the framework of Ley Veintidós, ultimately benefiting the broader community.