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Posted on 12/05/2015 12:57:52 PM PST by Hoodat
SAN JUAN, Puerto Rico (AP) -- Wal-Mart's Puerto Rico operation is asking the federal court in San Juan to void what it calls an "onerous" and "unconstitutional" tax that unfairly targets the U.S. retail giant.
It said in court papers filed Friday that the increased levy on purchases from U.S.-based Wal-Mart distribution centers by its island entities constitutes one of the world's highest taxes and pushes its effective tax rate to 91.5 percent of net income. The tax increase will cost Wal-Mart $155 million over six years and make its Puerto Rico business unsustainable.
The suit says that Puerto Rico's Act 72 specifically targets "megastores" such as Wal-Mart that have U.S. mainland-based related entities because local operations are exempt from the tax. It said Treasury Secretary Juan Zaragoza and other top government officials untruthfully accused it of evading taxes by manipulating the prices paid between related entities to underreport Puerto Rico income. . .
(Excerpt) Read more at finance.yahoo.com ...
Twenty locations in Puerto Rico... that’s a heckuva haul per store if the increase costs them that much extra.
I calculate a net profit of $1.41 million per store per year. Doesn’t sound that high to me.
Don’t know about John Galt but if I’m Sam Walton I’m sayin’ “hosta la vista” Puerto Rico.
Isn’t Vieques where we had a military bombing area where they bitched so much we said to hell with it and closed it down which was by far the areas largest employer?
Guess these welfare babies havent learned.
Shut the store down.
Let them go on the dole and live like rats.
Walmart has two choices.
Leave PR, or pay the Jizya to the Democrat Party
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Walmart: Those who live by lobbying, die by lobbying.
“The tax increase will cost Wal-Mart $155 million over six years and make its Puerto Rico business unsustainable.”
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I recommend IMMEDIATELY closing out their Puerto Rico stores once they lose their case. Anyone else doing business in Puerto Rico should also bail out ASAP. They’ve run out of Puerto Rican “other people’s money” and now are going after anybody’s money they can get their needy little hands on.
If 72 megastores shut down their operations, the Island would collapse economically.....
Retail prices would increase without the market forces of low cost, high volume business models....
Tax revenue would plummet since the small retailers picking up volume slack may not be so careful in their bookkeeping....(Greece )
In other words Fail just like every other liberal concept....
I bet WM wins in court....
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