The government is defending in court its decision to publish the list of beneficiaries of laws 20 and 22

The non-profit organization Espais Oberts (EA) went to court as an intervener in support of the position of the Department of Economic Development and Trade (DDEC) to publish the list of beneficiaries of decrees under laws 20 and 22 , an action filed in a lawsuit by the Puerto Rico Privacy Association, Inc. (PRPA), alleging that this action violates the privacy of its members, an unidentified group of investors.

The Department of Justice, which represents the defendants — the DDEC and the Department of the Treasury — indicated during the hearing held yesterday afternoon by Judge Anthony Cuevas Ramos, of the Extraordinary Appeals Chamber of St. John’s Court, that the publication of information related to the contributory decrees granted is made in accordance with the mandate of Law 60 of 2019 (known as the new Puerto Rico Incentive Code). He stressed that contrary to the plaintiffs’ argument, the information published is not confidential, personal or financial.

For their part, three lawyers from the law firm Block Legal, representatives of PRPA, presented their opposition to the rejection, insisting that the publication of the information violates the privacy of those who receive the decrees and undermines their contractual relationship with the government.

Espais Oberts questioned the active legitimacy of the association that filed the lawsuit, while joining the arguments presented by the DDEC in favor of dismissal.

Since 2017, Espais Oberts has advocated for the dissemination in Puerto Rico of information related to contributory concessions, As has been done in the United States and many other countries around the world since the 1970s, said EA Executive Director Cecille Blondet.

“Our people must have access to know the use that is given to every penny of public money, this includes knowing who receives it and in what capacity they receive it. This applies in the same way to contributory privileges. money left in the treasury for these concessions is also a public expense, for which both the government and those receiving these concessions must be held accountable, ”Blondet explained in a press release.

“Without clear and precise information we cannot assess the return on investment of these concessions and see if the longed-for social benefit has been achieved. In times of crisis, where austerity measures are imposed and services are cut to the population “The country cannot go blind on fiscal and budgetary issues. Every dollar counts and knowing is our right,” he said.

Tax or tax expenditures are all exclusions, deductions, exemptions, and contributory credits, among others, that the government gives to different types of taxpayers: individuals, businesses, industries, and nonprofits. In general, these concessions are authorized by law in order to encourage economic activity or achieve a social impact. Tax concessions are categorized as government expenditure incurred under the tax code, and like all government public expenditure, this information must be available to the public.

“The disclosure made by the Treasury and the DDEC is recent and historic. A step towards greater transparency, something that must be recognized and protected,” said Blondet. He noted that there are platforms, such as the “Subsidy-tracker” of Good Jobs First, which collect and make easily accessible the information disseminated by different jurisdictions in the United States.

In Puerto Rico, tax expenditures were an invisible expense, a hidden budget until 2019. Open Spaces fought the battle for the publication of a tax expense report and took it to court. The Board of Fiscal Supervision also supported the production of such a report.

Finally, in September 2019, the Treasury first published the Tax Expenditures Report, which revealed that these “expenses” in Puerto Rico total more than $ 20 billion annually. This figure constitutes 20.4% of the Gross Domestic Product or 30.3% of the National Gross Product and twice the annual general budget of the government of Puerto Rico.

From January 2020, the DDEC through its website, also began to publish information related to several of the laws granting credits or exemptions. About 70 laws authorize various government departments and other municipal instrumentalities to grant and regulate contributory concessions.

Those interested in learning more about how tax or tax expenses work can access the study conducted by Espais Oberts at: http://bit.ly/2muzEew