DOCSLIB.ORG

Informe-Anual-PDF.Pdf

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Informe-Anual-PDF.Pdf CONTENTS ÍNDICE Letter from the President & Chief Executive Officer.................................. 3 25-Year Historical Financial Summary...............................................................6 Management & Board of Directors....................................................................8 Carta del Presidente y Principal Oficial Ejecutivo...................................... 9 Resumen Financiero Histórico (25 años).......................................................12 Gerencia y Junta de Directores.........................................................................14 Popular, Inc. (NASDAQ: BPOP) is the leading Popular, Inc. (NASDAQ: BPOP) es la institución financial institution by both assets and deposits bancaria líder en depósitos y activos en Puerto in Puerto Rico and ranks among the top 50 U.S. Rico y se encuentra entre las primeras 50 entidades bank holding companies by assets. Founded in tenedoras de instituciones bancarias por número 1893, Banco Popular de Puerto Rico, Popular’s de activos. Fundado en 1893, Banco Popular de principal subsidiary, provides retail, mortgage Puerto Rico, la principal subsidiaria de Popular, and commercial banking services in Puerto Rico brinda servicios de banca individual, hipotecas y and the U.S. Virgin Islands. Popular also offers banca comercial en Puerto Rico e Islas Vírgenes in Puerto Rico auto and equipment leasing and estadounidenses. Popular también ofrece en Puerto financing, investment banking, broker-dealer and Rico servicios de financiamiento de autos y equipo, insurance services through specialized subsidiaries. inversiones y seguros a través de subsidiarias In the mainland United States, Popular provides especializadas. En Estados Unidos, Popular provee retail, mortgage and commercial banking services servicios de banca individual, hipotecas y banca through its New York-chartered banking subsidiary, comercial a través de su filial bancaria en Nueva Popular Bank, which has branches located in New York, Popular Bank, la cual cuenta con sucursales York, New Jersey and Florida. localizadas en Nueva York, Nueva Jersey y Florida. CORPORATE INFORMATION INFORMACIÓN CORPORATIVA Independent Registered Public Accounting Firm: Firma registrada de Contabilidad Pública PricewaterhouseCoopers LLP Independiente: PricewaterhouseCoopers LLP The company’s Form 10-K, proxy statement and El Formulario 10-K, el proxy y otra información any other financial information is available on financiera están disponibles en popular.com/en/investor-relations/annual-reports/ popular.com/accionistas/informe-anual/ ANNUAL MEETING REUNIÓN ANUAL The 2020 Annual Stockholders’ Meeting of Popular, La Reunión Anual de Accionistas 2020 Inc. will be held on Tuesday, May 12, at 9:00 a.m. at de Popular, Inc., se llevará a cabo el martes, the penthouse of the Popular Center Building, 12 de mayo, a las 9:00 a.m. en el piso PH San Juan, Puerto Rico. de Popular Center, San Juan, Puerto Rico. 2 | POPULAR, INC. POPULAR, INC. YEAR IN REVIEW DEAR SHAREHOLDERS: 2019 was an outstanding year for Popular. We achieved record core earnings, positive credit quality results, deposit and loan growth, in our Puerto Rico and United States operations, and maintained a robust capital position. Net income for 2019 was $671 million, compared to $618 million in the 2019 WAS AN OUTSTANDING previous year. Our 2018 results included the benefit of $159 million, YEAR FOR POPULAR. WE related to the early termination of the FDIC shared-loss agreements, and ACHIEVED RECORD CORE a $28 million expense related to the impact of the Puerto Rico tax reform EARNINGS, POSITIVE CREDIT on our deferred tax asset. After excluding the effects of these items, QUALITY RESULTS, DEPOSIT adjusted net income in 2018 was $487 million. AND LOAN GROWTH, IN OUR The adjusted increase of $184 million in net income this year was driven PUERTO RICO AND UNITED primarily by higher net interest income and a lower provision for loan STATES OPERATIONS, AND losses. During 2019 we benefitted from the full-year impact of the Reliable MAINTAINED A ROBUST acquisition, loan growth in both markets and continued increases in CAPITAL POSITION. deposit balances in Puerto Rico that, in turn, allowed us to increase the contribution from our investment portfolio. Additionally, during 2019 we recognized a $26 million income tax benefit related to exempt interest income from loans earned in prior years. We continued to experience stable credit quality metrics. Non-performing assets declined by 13%, when compared to the previous year, and the net charge-off ratio was 0.96%, compared to 1.13% in 2018. These results reflect positive performance both in Puerto Rico and the United States. While net-charge offs increased in the United States as we continued to work through the taxi medallion portfolio, this exposure was reduced to $19 million. Capital levels remained strong with year-end Tier 1 Capital and Tier 1 Common ratios of 17.8%. In 2019 we increased the quarterly common stock dividend, from $0.25 to $0.30 per share, and repurchased $250 million in common stock. We also announced several capital actions we will execute in 2020, including an increase in the quarterly common stock dividend from $0.30 to $0.40 per share and a common stock repurchase program of up to $500 million. Popular’s shares closed 2019 at $58.75, 24% higher than in 2018. This performance compares favorably against our U.S. peers and the KBW Nasdaq Regional Banking Index, both of which increased 20% in the year. 2019 ANNUAL REPORT | 3 WE CONTINUED TO EXECUTE OUR BUSINESS STRATEGY, STRUCTURED AROUND FOUR PILLARS. SUSTAINABLE AND PROFITABLE GROWTH: In Puerto Rico, we added 45,000 customers to reach 1.8 million, 915,000 of which actively used our digital channels. We grew loans and deposits by 1.5% and 10%, respectively. Our auto loan portfolio increased by 12%, evidencing the successful integration of the Reliable acquisition. At year-end, we acquired a $74 million credit card portfolio in Puerto Rico and, in a separate transaction, acquired the rights to issue credit cards under the JetBlue co-branded loyalty program in Puerto Rico. In the United States, we grew loans and deposits each by 9%. We continued expanding our niche businesses, mainly condo association banking and health care lending. SIMPLICITY: We continued to leverage technology and process optimization to streamline our operations to achieve efficiencies, improve both the customer and employee experience and position the Corporation for future growth. Progress in 2019 included an acceleration in the deployment of robotic process automation technology and the expansion of our process efficiency program, which is based on the LEAN methodology. CUSTOMER FOCUS: We dedicated significant resources to reinforce our service culture, offering new tools and development opportunities to all our employees. We also continued the transformation of our branch network in Puerto Rico and the United States, increasingly integrating technology to enhance our customers’ experience regardless of how they choose to interact with us. For example, in Puerto Rico we launched a new branch model focused on providing banking services via digital channels and self-service technology. We sought additional opportunities to serve the underserved. We opened a branch in Virgin Gorda in the British Virgin Islands, and we are proud to serve this community as the only bank branch on the island. FIT FOR THE FUTURE: We continued to invest in our talent and risk management infrastructures. Regarding our people, we implemented initiatives related to development, compensation, leadership and recognition. While ensuring we have the necessary talent today, we are anticipating and preparing for future needs. In the area of internal controls, we focused on our compliance program, particularly on strengthening the first line of defense, and on bolstering our cybersecurity program. Popular’s steadfast commitment to our customers, our people and our communities is an intrinsic part of how we conduct our business. That commitment inspired the founding of Popular 126 years ago, has manifested itself throughout our history and today is stronger than ever. We are proud of our tradition as a responsible corporate citizen, yet aware that local and global challenges facing our communities require more deliberate action from everyone, including the private sector. To this end, in 2019 we embarked on a process to formalize our priorities regarding environmental, social and governance (or ESG) practices. As part of this process, we will establish specific targets, track our progress and communicate our results regularly. We are convinced that continuous improvement in these areas provides the foundation for the long-term success of our company and our ability to deliver value to all our stakeholders. 4 | POPULAR, INC. I would like to acknowledge the hard work of over 8,000 colleagues in Puerto Rico, the United States and the Virgin Islands, which made possible our accomplishments in 2019. In recognition of our strong financial results and achievements during the year, our Board of Directors approved the maximum possible award under our Profit Sharing Plan for the second consecutive year. Early in 2020, our team demonstrated once again its resiliency and solidarity after a series of seismic events, including a magnitude 6.4 earthquake, impacted the southwestern region of Puerto Rico. Our employees in affected areas responded admirably, going above and beyond the call of duty to assist our clients and communities,
Load more

Recommended publications
  • An Overview of the Special Tax Rules Related to Puerto Rico and an Analysis of the Tax and Economic Policy Implications of Recent Legislative Options
    AN OVERVIEW OF THE SPECIAL TAX RULES RELATED TO PUERTO RICO AND AN ANALYSIS OF THE TAX AND ECONOMIC POLICY IMPLICATIONS OF RECENT LEGISLATIVE OPTIONS ____________ Prepared by the Staff of the JOINT COMMITTEE ON TAXATION June 23, 2006 JCX-24-06 Contents Page INTRODUCTION .......................................................................................................................... 1 I. EXECUTIVE SUMMARY............................................................................................. 2 A. Introduction................................................................................................................ 2 B. Overview of the U.S. Tax and Non-Tax Rules Related to U.S. Possessions............. 2 C. Special Tax Rules Related to Puerto Rico ................................................................. 3 D. Statehood, Commonwealth, and Independence Status .............................................. 5 E. Economic Analysis.................................................................................................... 5 F. Legislative Options.................................................................................................... 6 II. PRESENT LAW TAX PROVISIONS RELATED TO PUERTO RICO AND OTHER U.S. POSSESSIONS ....................................................................................... 13 A. Overview of U.S. Tax Provisions Relating to Puerto Rico...................................... 13 1. In general..........................................................................................................
    [Show full text]
  • The House Report
    821) CONGRESS OUSE OF REPRESENTATIVES '.' REPOR d Session f No. 1832 APPROVING THE CONSTITUTION OF THE COMMON- WEALTH OF PUERTO RICO WHICH WAS ADOPTED BY TIHE PEOPLE OF PUERTO RICO ON MARCH 3, 1952 ArnI. 30, 1952.-Committed to tho Committee of the Whole House on the State of tho Union and ordered to be printed Mr. MURDOCK, from the Committee on Interior and Insular Affairs, submitted the following R E P O R T [To accompany II. J. Res. 430] The Committee on Interior and Insular Affairs, to whom was referred the joint resolution (II. J. Res. 430) approving the Constitution of tlhe Commonwealth of Puerto Rico which was adopted by the people of Puerto Rico on March 3, 1952, having considered the same, report favorably thereon without amendmenCl(lllt and recommend that the joint resolution (10 pass. The enactment into law of House Joint Resolution 430, which approves the Constitution of Puerto Rico adopted by thlo people of Puerto Rico in a referendum on March 3, 1952, constitutes the latest of a series of enactments through which the Federal Government lias provided ever-increasing self-government in Puerto Rico. ADVANCEIMENT' OF 8ISELF-GOVERINMIENT IN PU1EWITO rICO Puerto Rico was coded to the United States by Spain under the terms of the Treaty of Paris in 1898, which followed the Spanish- American War. The island continued under military government of the United States until Congress passed the Foraker Act in 1900, which was an act temporarily to provide revenues tand civil govern- mont for Puerto Rico. Under this first organic act the affairs of Puerto Rico were administered by a Governor appointed by the President of the United States and six department heads and justices of the supreme court, likewise appointed by the Prjinlent.
    [Show full text]
  • Special Source Rules Applicable to Certain Gains of Former United States Residents ° 1
    Tax Special source rules Residents applicable to certain gains Taxpayers of former United States residents March 22, 2021 Note: All legal references are to applicable sections of the United States Internal Revenue Code of 1986 and the regulations issued thereunder, unless expressly stated otherwise. One of the appealing aspects of becoming a bona fide resident of Puerto Rico (“BFR-PR”) from a tax perspective lies in the United States federal tax treatment of certain items of income derived by Puerto Rico residents. This article focuses on the federal income tax implications of certain capital gains derived by a new BFR-PR that previously resided in the United States. As a general rule, capital gains on the sale or exchange of personal property by a BFR-PR are excluded from US income tax under §933 and §865(a). However, special rules apply to gains resulting from the sale of certain property owned by the individual before establishing Puerto Rico residency (“Previously Owned Property”) and sold within 10 years of the move. Any individual that falls within the scope of these rules should understand its tax impact and prepare to report gains derived from transactions of Previously Owned Property in the corresponding income tax return. This reading does not pretend to offer an extensive discussion of all questions that may arise in connection to Previously Owned Property and a new BFR-PR. Instead, our intention is to provide some basic guidance on the federal tax implications that the sale of Previously Caroline López, CPA, Esq. Owned Property may trigger to some BFR-PR and provide a general overview of the interplay Tax Manager of these rules with virtual currencies.
    [Show full text]
  • Community, Family and Youth Resilience (CFYR) Program Annual Report October 1, 2018 to September 30, 2019
    Community, Family and Youth Resilience (CFYR) Program Annual Report October 1, 2018 to September 30, 2019 Submission Date: October 30, 2019. Updated December 18, 2019. Submitted by: Creative Associates International 1 ACRONYMS AND ABBREVIATIONS AAA - Action and Advocacy Agenda BLES - Basic Life and Employability Skills CARICOM – Caribbean Community CSWC - Charlotte Street Wesleyan Church COP - Chief of Party CEC - Community Enhancement Committees CFYR - Community, Family and Youth Resilience Program CSP - Community Safety Plan CLC - Critchlow Labour College DQA - Data Quality Assessment DCOP – Deputy Chief of Party DPP - Director of Public Prosecution FACES - Family Adaptability and Cohesion Scales FACT - Family Awareness Consciousness Togetherness FGD – Focus Group Discussion FYCW - Family and Youth Community Worker JJR – Juvenile Justice Reform LOP - life of program MoCD - Ministry of Community Development, Gender Affairs and Social Services (St. Kitts) MoE - Ministry of Equity, Social Justice, Empowerment and Local Government (Saint Lucia) MoPT - Ministry of Public Telecommunications (Guyana) MoSP - Ministry of Social Protection (Guyana) NOC – New Opportunity Corps NIA - Nevis Island Administration PIFSM - Prevention and Intervention Family Systems Model RLE - Regional Learning Exchange 2 RLN - Regional Learning Network RLIC - Ruimveldt Life Improvement Centre SCP - Social Crime Prevention SDCP - Social Development and Crime Prevention SLHTA - Saint Lucia Hospitality & Tourism Association SLS - Social and Leadership Skills SSDF - Saint
    [Show full text]
  • EXECUTIVE SUMMARY Economic Development in Puerto Rico Faces Unprecedented Challenges
    EXECUTIVE SUMMARY Economic Development in Puerto Rico faces unprecedented challenges ECONOMIC CONTRACTION IRMA & MARIA HURRICANES The economy of Puerto Rico has been The magnitude of the devastation on the contracting for more than a decade. It has Island caused by the hurricanes Irma and a debt that exceeds 100 percent of its María is historic and demands an annual economic output and has caused extraordinary response for Puerto Rico to get fiscal liquidity and solvency challenges. back on its feet. PROMESA FEDERAL TAX REFORM The approval of PROMESA in 2016 has The federal tax reform (Tax Cuts & Jobs Act) created a certain lack of clarity regarding will have an impact, both on our current governance matters, which in turn may manufacturing base, and on the promotion impact our business climate. Uncertainty is strategies and incentives use to attract not good for local or external investors. foreign investment to the island. EVOLUTION OF PUERTO RICO’s ECONOMY IN THE PAST 70 YEARS ADVANCE MANUFACTURING, KNOWLEDGE ECONOMY, AGRARIAN ECONOMY INDUSTRIAL ECONOMY SERVICES Sugar cane, tobacco & coffee Petro-chemical, electronics, Life Sciences, Aerospace, Technology, apparel & textiles, Agro Tech Industries, Export Services, pharmaceuticals Tourism/Visitor’s Economy < 1950’s 1950-1990’s > 2000’s O U R E C O N O M Y TODAY GROSS DOMESTIC PRODUCT SHARE BY MAIN ECONOMIC SECTOR GPN $70.1 billion FISCAL YEAR 2017 GDP $105.0 billion Construction & Mining GDP PER CAPITA $30,516 0.9 Utilities 2.1 0.8 Agriculture EXPORTS VALUE $71.9 billion Government IMPORTS
    [Show full text]
  • Understanding the Urgent Need for Subtitling for the Deaf and Hard of Hearing in the Spanish-Speaking Greater Antilles
    Understanding the Urgent Need for Subtitling for the Deaf and Hard of Hearing in the Spanish-Speaking Greater Antilles Adrián Fuentes-Luque Universidad Pablo de Olavide Pabsi Livmar González-Irizarry Universidad Pablo de Olavide _________________________________________________________ Abstract Citation: Fuentes-Luque, A. & González- Even though audiovisual translation (AVT) is growing and flourishing Irizarry, P.L.. (2020). Understanding the throughout the world, it is practically unheard-of in the Caribbean, Urgent Need for Subtitling for the Deaf and Hard of Hearing in the Spanish- where accessibility faces an even bleaker existence. The circumstances Speaking Greater Antilles. Journal of of the deaf and hard of hearing (also referred to as D/deaf) are no less Audiovisual Translation, 3(2), 286–309. alarming: social barriers and exclusion are widespread. This paper Editor(s): A. Matamala & J. Pedersen emphasizes the need to make subtitles accessible in the Spanish- Received: February 1, 2020 speaking Caribbean, specifically on the islands of Puerto Rico, Cuba, and Accepted: July 22, 2020 the Dominican Republic, and underscores the challenges faced by the Published: December 21, 2020 D/deaf communities on each island. Our research focuses on issues like Copyright: ©2020 Fuentes-Luque & AVT laws and regulations, the habits of viewers of audiovisual (AV) González-Irizarry. This is an open access products, and literacy and limitations on each island. This paper also article distributed under the terms of the examines the different types of D/deaf audiovisual consumers in the Creative Commons Attribution License. This allows for unrestricted use, Spanish-speaking Caribbean and the difficulties each community faces distribution, and reproduction in any when accessing media and entertainment.
    [Show full text]
  • An Introduction to Puerto Rico
    This page was intentionally left in blank. 2 Table of Contents Chapter 1: An Introduction to Puerto Rico .................................................... 8 1. Historical Overview .......................................................................................................... 8 2. Geography ....................................................................................................................... 8 3. Government Systems ...................................................................................................... 8 4. Demographics.................................................................................................................. 9 5. Language ......................................................................................................................... 9 6. Currency and Monetary Policy ...................................................................................... 10 7. Macroeconomic Overview and Key Indicators ............................................................ 10 A. Gross Domestic Product (GDP) ........................................................................... 10 B. Work Force ............................................................................................................ 11 C. External Trade ....................................................................................................... 11 D. Retail Sales.............................................................................................................11 E. Consumer Price Index
    [Show full text]
  • Incentive Regulation Code English AK
    GOVERNMENT OF PUERTO RICO DEPARTMENT OF ECONOMIC DEVELOPMENT AND COMMERCE SAN JUAN, PUERTO RICO INCENTIVE REGULATION MO-DEC-013 SEPTEMBER 2020 TABLE OF CONTENTS CONTENT PAGES PREAMBLE 5 SUBTITLE A. - GENERAL PROVISIONS 7 Ar6cle 1000.01-1. - Title 7 Ar6cle 1000.01-2. - Legal Basis 7 Ar6cle 1000.01-3. - Scope 7 Ar6cle 1000.01-4. - Purpose 7 Ar6cle 1000.01-5. - Terms Used 8 Ar6cle 1000.02-1. - Classifica6on 8 Ar6cle 1000.02-2. - Organiza6on 8 Ar6cle 1000.04(e)-1. - Most Favorable Terms and Condi6ons; Interrela6onship with other Laws 9 CHAPTER 1. - RESERVED 10 CHAPTER 2 - DEFINITIONS 10 SUBCHAPTER A. - GENERAL DEFINITIONS 10 SUBCHAPTER B. - DEFINITIONS APPLICABLE TO INDIVIDUALS 25 SUBCHAPTER C. - DEFINITIONS APPLICABLE TO EXPORTS OF GOODS AND SERVICES 27 SUBCHAPTER D. - DEFINITIONS APPLICABLE TO FINANCE, INVESTMENT AND INSURANCE 34 SUBCHAPTER E. - DEFINITIONS APPLICABLE TO VISITOR ECONOMY 35 SUBCHAPTER F. - DEFINITIONS APPLICABLE TO MANUFACTURING 54 SUBCHAPTER G. - DEFINITIONS APPLICABLE TO INFRASTRUCTURE AND GREEN OR HIGHLY EFFICIENT ENERGY 55 SUBCHAPTER H. - DEFINITIONS APPLICABLE TO AGRO-INDUSTRIES 56 SUBCHAPTER I. - DEFINITIONS APPLICABLE TO CREATIVE INDUSTRIES 59 SUBCHAPTER J. - DEFINITIONS APPLICABLE TO OTHER INDUSTRIES 63 SUBTITLE B. - ECONOMIC DEVELOPMENT INCENTIVES 65 CHAPTER 1. - INCENTIVES OF GENERAL APPLICATION 65 SUBCHAPTER A. - GENERAL RULE ` 65 SUBCHAPTER B. - SMALL AND MEDIUM-SIZED ENTERPRISES (SMES) 66 SUBCHAPTER C. - VIEQUES AND CULEBRA 67 SUBCHAPTER D. - OTHER INCENTIVES 68 CHAPTER 2. - INDIVIDUALS 71 SUBCHAPTER A. - ELIGIBILITY 71 SUBCHAPTER B. - RESERVED 74 SUBCHAPTER C. - REGISTRATION FOR THE CONCESSION OF EXEMPTION 74 SUBCHAPTER D. - SPECIAL PROVISIONS 74 CHAPTER 3. - EXPORT OF GOODS AND SERVICES 75 SUBCHAPTER A. - ELIGIBILITY 75 SUBCHAPTER B.
    [Show full text]
  • DIRECTORY a GOLDEN OPPORTUNITY It Is with Great Pleasure I Welcome You to the 2013 ICSC Caribbean Conference Being Held in San Juan, Puerto Rico
    DIRECTORY A GOLDEN OPPORTUNITY It is with great pleasure I welcome you to the 2013 ICSC Caribbean Conference being held in San Juan, Puerto Rico. We come from a fantastic region, unique in the world. We are united by a common history, a vibrant present and a bright and promising future. From the Gulf of Mexico, through Central America to the northern area of South America; continuing on our journey, the region is interlaced with heavenly islands which, like pearls emanating from the sea, make up an extraordinary gem, famous in the world for its wealth in cultural diversity. This is Puerto Rico, this is the Caribbean Conference, where there is no other conference like it. Where we are going to feel at home and have the golden opportunity to meet with industry professionals of the most important shopping centers in this region, to network, share experiences, projects and visualize together our future. We look forward to another successful conference this year with great speakers and informative sessions. I hope that you also take advantage of meeting, networking and doing deals with this year’s exhibitors at the Trade Exhibition. I am excited that you can join us and hope to meet you during the conference. Alfredo Cohen ICSC Trustee, 2013 Caribbean Conference Program Planning Committee Chair Director Constructora Sambil Caracas, Venezuela GOLD SPONSORS SILVER SPONSOR BRONZE SPONSOR February 4–6, 2013 • Puerto Rico Convention Center • San Juan, Puerto Rico government finances. Now, signs of revival in economic activity MONday, FEBRuary 4, 2013 in the Caribbean are emerging. Nevertheless, while the recovery continues to move forward, growth globally is moving to a 8:00 am – 7:00 pm weaker, rather than a stronger, performance profile, thereby limiting Caribbean longer-term economic prospects.
    [Show full text]
  • U.S. Tax Imperialism
    Seattle University School of Law Digital Commons Faculty Scholarship 2015 U.S. Tax Imperialism Diane Lourdes Dick Follow this and additional works at: https://digitalcommons.law.seattleu.edu/faculty Part of the Tax Law Commons Recommended Citation Diane Lourdes Dick, U.S. Tax Imperialism, 65 Am. U. L. Rev. 1 (2015). https://digitalcommons.law.seattleu.edu/faculty/729 This Article is brought to you for free and open access by Seattle University School of Law Digital Commons. It has been accepted for inclusion in Faculty Scholarship by an authorized administrator of Seattle University School of Law Digital Commons. For more information, please contact [email protected]. ARTICLES U.S. TAX IMPERIALISM IN PUERTO RICO DIANE LOURDES DICK* This Article uses historical and legal analysis to demonstrate how U.S. domination over Puerto Rico's tax and fiscal policies has been the centerpiece of a colonial system and an especially destructive form of economic imperialism. Specifically, this Article develops a novel theory of U.S. tax imperialism in Puerto Rico, chronicling the sundry ways in which the United States has used tax laws to exert economic dominance over its less developed island colony. During the colonial period, U.S. officials wrote and revised Puerto Rican tax laws to serve U.S. economic interests. In more recent years, U.S. tax laws have disadvantagedPuerto Ricans, who still lack voting rights and full democratic representation in Congress. A theory of tax imperialism may also have applicationfar beyond the U.S.-Puerto Rican experience. For instance, it may help us understand the relationships between the United States and its other possessions and territories throughout history, and between the United Kingdom and its British Crown dependencies, overseas territories, and newly-independent colonies.
    [Show full text]
  • Puerto Rico: Continuing Socio-Economic Deterioration and the Need for Change
    PUERTO RICO: CONTINUING SOCIO-ECONOMIC DETERIORATION AND THE NEED FOR CHANGE J. Tomas Hexner President of Hex, Inc. Founder and director, Science Initiative Group at the Institute for Advanced Study at Princeton, New Jersey Arthur MacEwan Professor Emeritus of Economics at the University of Massachusetts Boston Development Discussion Paper: 2017-12 ABSTRACT The long-run decline of the Puerto Rican economy, predating the recession of the last decade, is evident in the relative stagnation that emerged from 1980 onward. The roots of both the relative stagnation and the long recession lie in the political status of the island. The option of statehood, however, can be the foundation for a new era of economic expansion. The long-lasting economic problems of Puerto Rico are evidenced by several measures: the low rate of economic growth, the high unemployment rate and the low labor force participation rate, the falling investment rate, the high poverty level, the extreme degree of economic inequality, and the massive exodus to the states. And, of course, there is the very high—crisis level— amount of public debt. In addition and of central importance, the poor treatment of Puerto Rico relative to the states by the U.S. government has contributed to the economic situation on the island and demonstrates the role of status in bringing about economic weakness and decline. The popular belief that Puerto Rico receives ―generous‖ treatment from Washington is belied by the data. Moreover, while many observers viewed Puerto Rico as an economic success story during the late 1900s, this view erred in measuring success by the growth of GDP instead of GNP, the former including the profits of firms based off the island (mainly in the U.S.) and not providing a measure of economic conditions of Puerto Rican people of firms.
    [Show full text]
  • PUERTO RICO RELOCATION GUIDEBOOK PUERTO RICO PUERTO RICO RELOCATION GUIDEBOOK RELOCATION by ELOCATE GUIDEBOOK by Second Edition, 2021 ELOCATE
    PUERTO RICO RELOCATION GUIDEBOOK RICO RELOCATION PUERTO PUERTO RICO PUERTO RICO RELOCATION GUIDEBOOK RELOCATION BY ELOCATE GUIDEBOOK BY Second Edition, 2021 ELOCATE PRelocate is one of a select few government licensed Qualified Promoters under the Act 60 (formerly Acts 20/22) tax decree program. Extensive FAQ, Real Estate Overview, Our mission is to help individuals and businesses minimize the time and Compliance and cost of moving to Puerto Rico, from when they first consider the Best Practices idea to when they relocate. As successful entrepreneurs who moved to Puerto Rico several years Second ago, we saw an opportunity to assist future relocators. We provide Edition subject-matter expertise on the relocation process so you can focus 2021 on other priorities: your business, your family, your life. To help you conduct diligence and quickly determine whether Puerto Rico is right for you, we’ve distilled Learn How to Move to Puerto Rico and Pay 4% the latest and most important information Corporate Income Tax and 0% Capital Gains Tax about relocation into this easy-to-use guide. MICHAEL SAMUEL B. SCHOENFELD SILVERMAN Free Downloads & Templates EL OC AT Visit RelocatePuertoRico.com E SAMUEL B. SILVERMAN MICHAEL SCHOENFELD Call 787-503-8184 Puerto Rico Relocation Guidebook PRelocate 2 The Official PRelocate Guidebook, Second Edition Copyright © 2021 by PRelocate, LLC Miramar Plaza, 954 Avenida Ponce de Leon, Suite 205 San Juan, Puerto Rico 00907 https://relocatepuertorico.com 787-503-8184 All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage, dissemination, and/or retrieval system without prior written permission from the Author.
    [Show full text]