Walmart desist requests to sue the government
Ramos Vega asked to accept pay 2% of sales per year as a reasonable contribution
Representative Luis Vega Ramos called Walmart today the company to desist from his claim against the Government of Puerto Rico by the tax increase purchases subsidiary on the island does to its parent company.
The lawsuit was filed Friday in federal court in relation to the amendment to Law 72, which changed the taxation of these transactions, known in English as “transfer pricing”.
At a press conference in his office on Capitol Hill, Vega Ramos questioned the demand and urged Walmart Puerto Rico to accept their part in the various initiatives that have sought to address the fiscal crisis of government.
“I am publicly asking Walmart Puerto Rico desist demand, announce your file and is in accepting pay 2% of sales per year as a reasonable contribution,” said Vega Ramos.
The legislator said demand shows that Walmart in Puerto Rico generates about $ 2.750 million a year and reported they will pay $ 45 million for the increase in the tax mentioned.
Noting that with these figures Walmart pay only 2%, compared Ramos Vega’s contribution to the corporation of individuals who have to rendering him to the Department of Finance from 10%, 15% and even 18% of their income.
“If the Puerto Rican walk can pay 10% or 15% of their income … why this company can not pay 2% of its sales and income,” said Vega Ramos.
After commenting that Walmart has 55 stores and 15,000 employees, the representative reiterated his complaint to Walmart to “understand that we are all called to reasonably contribute to oust Puerto Rico – where they have those sales – forward.”
He explained that the objective of increased taxation to “transfer pricing” is to “where the real profit, not in the final sale.”
Thus, he recalled that the practice of multinational companies is that subsidiaries buy most of their items to the same parent corporation. He offered as an example the purchase of million books to three cents in China, which then ends up being sold on the island to a dollar than a penny taxed.
According to the legislator, the Treasury Department expects the increase in tax “transfer pricing” leave about $ 125 million to the Treasury of Puerto Rico.
Vega Ramos said that in other jurisdictions have this tax, although he did not mention them and said he was not aware that elsewhere has been challenged.
“Do not play with the anxieties of the employees of the company not play with the anxieties of the suppliers to those who buy it -. According to their numbers on demand – $ 1.6 trillion ($ 1,600 billion) in goods, including $ 500 million in products made in Puerto Rico, “said the representative.
“We know it will not go to Puerto Rico for the payment of $ 45 million in contributions,” he said.