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Hurricane Maria’s devastation through Puerto Rico has brought upon a series of logistical and fiscal challenges which require the government to respond in efficient and agile manner. In order to achieve an effective fiscal administration the Puerto Rico Treasury Department issued Administrative Determination No. 17-28 on November 10, 2017.

On November 2, 2017, the Republican members of the House Ways & Means Committee released a draft Tax Reform Bill named the Tax Cuts and Jobs Act, formally commencing a tax reform process in the United States that would consequently affect Puerto Rico.

Following is an updated summary of our 2017 Tax Calendar due dates for the months of November and December.

Many companies who have suffered damages to their property have experienced business interruptions for some time. Most of those companies have insurance policies covering damages to property and interruptions caused by these natural disasters. Accounting for insurance recoveries depends in the nature of the claim.

As a result of the passing of Hurricane María through Puerto Rico on September 27, 2017, the Puerto Rico Treasury Department (“PRTD”) announced the postponement of various tax filing and payment due dates during the months of September and October 2017. Informative Bulletin 17-25 (“IB 17-25”) specifies the new due dates for some tax returns and/or payment of taxes.

Many private and public companies are struggling to implement the ASC 606 revenue recognition standard. Progress is slow, while the deadline — at least for public companies — is approaching quickly. The new standard will be effective in the first quarter of 2018 for calendar-year public companies and in 2019 for nonpublic entities.

On September 29, 2017, the President of the United Stated of America signed into Law H.R 3823, known as the Disaster Tax Relief and Airport and Airway Extension Act of 2017 (the “Act”), which provides a series relief measures for zones and areas that were affected by hurricanes Harvey, Irma and Maria, among other matters. Foremost among these is the concession of a business tax credit under Section 38 of the U.S. Internal Revenue Code of 1986, as amended (the “IRC”) to employers for employee retention.

Questions have arisen in practice regarding the presentation of current and noncurrent assets and liabilities of a discontinued operation in the statement of financial position. In particular, stakeholders have questioned whether there are circumstances in which it is appropriate to classify as current all assets and liabilities of the discontinued operation.

On August 8, 2017, Law 92 of 2017 was approved to establish an incentive plan that grants to insured and uninsured employers to the Workmen’s Compensation Insurance Fund Corporation (CFSE), which has outstanding and unpaid debts due to premiums, a discount of 50% of the accumulated debt.

On August 23, 2017, the San Juan Superior Court (the “Court”) held that the municipal business contribution imposed by the municipality of Caguas, known in Spanish as the “Aportación Empresarial Municipal”, was illegal and/or ultra vires.

With the SEC heightening its scrutiny of organizations’ cybersecurity processes and new technologies also creating new channels for cyberattacks, the need is greater than ever for audit committees to be a more integral part of cybersecurity management efforts.