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U.S. District Court finds Puerto Rico corporate alternative minimum tax scheme unconstitutional

The U.S. District Court for the District of Puerto Rico recently found subsections of Puerto Rico’s alternative minimum tax (AMT) statute unconstitutional. Specifically, the court declared subsections of the tax imposing a tangible-property tax and expenses tax, as well as the related list of exemptions, invalid under both federal constitutional and statutory law. The court permanently enjoined the statutes at issue, requiring the Puerto Rico secretary of the treasury to immediately stop levying, collecting and enforcing these portions of the AMT.

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