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In this issue we will review the FASB propose amendments to the definition of collections to Not-For-Profit Entities.

The US Tax Cuts and Job Act of 2017 aims to spur long-term investments in low-income urban and rural communities throughout the US and Puerto Rico by investing in a qualified opportunity fund.

Companies have been employing digital technology for years, but they are only now committing themselves to pursuing durable digital transformations.

Employers will no longer have to visit the Department of Labor and Human Resources (DTRH) in search of posters of labor laws. Now they can download them through the internet and reproduce them at their convenience to comply with the obligation to place them in a visible area in your company.

When held by leadership, there’s no chance that risk management will be taken seriously. Significant fraud avoidance and mitigation are built on top-level awareness and commitment, and effective assessment to direct risk management activities.

Insightful and objective solutions to the challenges facing businesses today

How boards and executive teams communicate about risk, among themselves and through the ranks, determines much of the organization’s approach to risk. Leaders who have been focused on risk management primarily as compliance typically need to examine and discuss the broader risk picture.

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It is the duty of every employer to insure his/her employees against all work-related injuries, illnesses or death with the Puerto Rico State Insurance Fund Corporation (CFSE) Worker’s Insurance.

The Puerto Rico Code establishes a 51% limitation on the amount of deductions that an entity can take for expenses paid to related entities outside Puerto Rico or on allocations of expenses made to the Puerto Rico entity.

Digitization is allowing tax authorities in Puerto Rico to collect tax data in real time or near real time, and use the information to respond quickly and in targeted ways to perceived compliance risks.

The Disaster Tax Relief and Airport and Airway Extension Act of 2017 (the “Act”) allows relief measures for zones and areas that were affected by Hurricanes Harvey, Irma and Maria. Of particular interest was the concession of a business tax credit to employers for employee retention on disaster areas under the U.S. Internal Revenue Code of 1986, as amended (the “IRC”).

On April 27, 2018, The Puerto Rico Department of Labor and Human Resources informed the intention to adopt a new regulation for the administration of the unemployment insurance program.

On March 7, the FASB met to discuss stakeholders’ comments on two proposed ASUs featuring targeted improvements to the new leasing guidance and amendments to the disclosure requirements for fair value measurement. These discussions are summarized below.

In recent years, the world has seen exponential growth in the amount of data being captured, processed and stored by organizations, mirrored by a relative reduction in the cost of data storage itself. As a result, the timely, accurate analysis and appropriate management of these vast amounts of data (‘big data’) is where organizations can recognize real business value.

Act 25 of 2017 created a new category of merchants known as “Non-withholding Agent”. These merchants are engaged in the business of “mail order sales” and their only contact with Puerto Rico is that the buyer is a resident of Puerto Rico or a person carrying on a trade or business in Puerto Rico.