Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: March 29, 2013
The Firm
201-896-4100 info@sh-law.comThe small island has launched a campaign encouraging wealthy individuals to relocate to shield future income from the Internal Revenue Service without giving up their passports, according to Bloomberg News. The article notes that Puerto Rico is currently struggling to improve its economy and is attempting to do so by encouraging affluent individuals to invest their money in its economy, which may help it avoid IRS taxes. However, opponents of the campaign said the state is flirting with a dangerous concept, and one that may persuade Americans to potentially violate U.S. tax law.
“They’re walking a fine line,” John Buckley, former tax counsel for Democrats on the House Ways and Means Committee, told Bloomberg. “This would be the first time that Puerto Rico would kind of deliberately erode the U.S. tax base for individuals.”
Bloomberg reports that 10 wealthy Americans have already taken advantage of a new Puerto Rican law that enables them to avoid U.S. capital gains taxes if they sign an agreement with the island’s government. In order to participate in the agreement, U.S. individuals must pass residency tests – which requires them to spend 183 days in Puerto Rico – and make social and personal connections. Corporations are considering investing more heavily in the territory as well, namely because it is considered foreign territory for tax purposes. This allows companies that conduct operations on the island and make profits to earn and leave money in Puerto Rico without paying U.S. corporate income taxes.
As this trend begins to gain the attention of America’s more wealthy residents – such as billionaire John Paulson – Congress has noted that it will be paying closer attention to these developments.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!