Law360 Notes Firm’s Defense of Puerto Rico in a Tax Dispute with Wal-Mart Puerto Rico Inc.

The team of Robert J. Fitzgerald, David A. Schumacher, Susan E. Seabrook, Caroline C. Setliffe, H. Marc Tepper and John P. Warner was noted in Law360 for defending Juan C. Zaragoza-Gomez, Puerto Rico’s Secretary of the Treasury, in a dispute with Wal-Mart Puerto Rico Inc. Wal-Mart has challenged Puerto Rico about a business tax law, known as Act 72, that created a 6.5 percent tax bracket for companies that have a gross revenue of over $2.75 billion from business in Puerto Rico. Wal-Mart sued Puerto Rico in December and claimed that it is the only company subject to the Act in Puerto Rico and that the tax violates the Commerce Clause.

Puerto Rico contends that Wal-Mart’s claims are not appropriate for a trial because Wal-Mart has not filed a request for a refund of the taxes raised by Act 72. The timing of the trial would be especially important, as a trial could exacerbate Puerto Rico’s debt crisis.

Read the full article (subscription required) – “Puerto Rico Defends Business Tax Against Wal-Mart Challenge” (Law360, February 2, 2016)