P.R. Laws tit. 13, § 8003
The legislation that restructures the tax system shall be based on the relative and interrelated compliance of the following objectives:
(a) Each person or economic entity shall contribute to the State Treasury according to his/her/its capacity to pay taxes, which implies that individuals in like circumstances shall pay the same, but persons in different circumstances shall be subject to different obligations.
(b) Taxes are of general application. The concession of special fiscal treatment shall be limited to cases strictly related to compliance [with] the objectives of this chapter.
(c) The tax structure shall be simple so that each person may determine his/her tax obligation without greater difficulty, and because this may vary according to the change in the individual’s behavior or economic condition.
(d) The tax system shall generate the least distortion possible of the economic and social system, which implies minimizing excessive tax burdens in some sectors and redistributing them among all the other persons and economic entities.
(e) The fiscal structure shall provide the necessary resources for the administration of the State’s programs and shall be harmonious with its economic development incentives.
(f) The tax administration shall be effective in the control of tax evasion without imposing excessive compliance costs.
(g) The tax reform shall be harmonious with the economic development policy established by the Government of Puerto Rico, which is based on the acquisition of fiscal resources in ways that encourage productive as well as entrepreneurial activity and the efficient use of fiscal resources, as well as promoting balanced economic priorities.
(h) The tax reform shall encourage saving.
(i) The tax reform shall encourage traditionally ignored sectors to become part of the production process.
(j) The tax reform shall encourage the creation of investment instruments within the reach of moderate income taxpayers.
History —Sept. 26, 1994, No. 109, § 3.