Urging Puerto Rico Corporations NOT to file their Annual Report on April 15th…. File the Extension!!!

The reason is very simple.  But first I have to give a background to a story made for legislative lobby heaven.  On December 16th, 2009, the Governor of Puerto Rico signed what is now known as Law 164.  This Law, The General Corporations Act of Puerto Rico, is a full amendment to the previous General Corporations Law of 1995.  The purpose of the new law is to make the local law more attractive to the creation of Juridical entities, and make it as easy as it would be in some states of the union.  However, there was a specific article that leaves me speechless and defeats all the good faith effort made to protect the business concern of the local entities.

Under the 1995 law, Regular for profit Corporations had to file annually a report, in which they will inform the State Department in a Notarized document, the identity of the Directors and Officers of the Corporation, and will report a Balance Sheet for the year ended on December 31st of the previous year.  Only if the business exceeded a business volume of $1 million, a duly licensed Certified Public Accountant had to perform an audit of the Financial Statement, which includes the Balance Sheet.

Under the New Law of 2009, the Puerto Rico Legislature eliminated the requisite of the report being Notarized. But, there is a requirement in Article 15.01(a)1 that any corporation under that article that exceeds business volume of $3 million should be accompanied by an Audited Financial Statement (this amendment is very good, since there are some businesses that do not need this kinds of services from a CPA for only $1 million like in the previous law).  But the new law says that for those corporations with business volume under $3 million, a Financial Statement compilation must be made by a duly licensed Certified Public Accountant.  That is preposterous.

If the spirit of the law was to increase the business volume required to Audit the Financial Statements, how are they going to require those with less business volume, that didn’t need to retain a CPA for the annual report before, to incur in additional business expenses for a Financial Statement Compilation?  Makes absolutely no sense.

The President of the Puerto Rico Society of CPA’s must have lobbied for this wording to be included in the New Law 164.  There is a campaign to protect the CPA certification from accountants that do not hold the credentials from the government as a CPA.  Right now, a non-CPA accountant may not issue Financial Statement Compilations, or any other attest services regarding Financial information.  Up to that point, I agree.  I am a CPA, and it is not fair that non-CPA accountants, that didn’t pass the hardship of the CPA Examination or the 120 CPE requirement every 3 years to be able to do the same services that I do.  But there should be limits to the absurd, when the law provides an opening for the services to be provided.

In no place in the old law did it mention that the under $1 million in business volume corporation needed to do a “Compilation”.  They just had to file a Balance Sheet.  The only attestation wording used in that old law was “Audit” for those corporations that exceeded the $1 million. Then what was the difficulty here?

An amendment is in the works.  There is the House of Representatives version of the amendment, filed as P.C. 2496, which still is not filed with their committee reports.  There is the Senate version of the amendment, filed as P.S. 1442, which although has the committee reports filed since March 23, 2010, hasn’t been placed in the floor calendar for voting.

Any action taken from one of the legislative houses require a same action on the other side.  Even if the Senate approves the bill this week, the House of Representatives has to do the same, maybe next week because they are in break this week.  But next week is April 15th!!!

So, everybody in Puerto Rico that has to file a Corporation Annual Report, if you want to be sure that you don’t have to incur in the expense of a Financial Statement Compilation that is not necessary, file an Extension until the legislative branch figures how to work their issue with the New General Corporations Law of 2009.  Better safe than sorry!!

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Charles

Twitter:  @charlesgustave              @Business_Legal

Anti-Abortion belief is not justification for Cold Blooded Murder

Eleven months ago Scott Roeder shot Dr. Tiller in the head while coming out of a church service. His motive was that he was “saving” the lives of many unborn children at the hands of an abortion doctor. Neither the law, nor a jury of his peers sided with him in his stand-alone position. And of course, neither do I.

Today was the sentencing of Mr. Roeder, who was convicted of murder in January. The jury decided then in 37 minutes that “protecting” unborn babies was not justification enough to kill the doctor. Then again, who’s responsible for the abortion, the doctor, or the pregnant woman?

It is very easy to blame the doctor that performs abortions because for fanatics out there, whose religious beliefs cloud their minds with the shroud of holiness and pureness, that are not able to recognize that the legal establishment recognizes the woman’s “Right to Choose” over her body. I’m very tired of arguing that the correct argument is not Pro-Life vs Pro-Death. The correct argument is Pro-Choice vs No-Choice. And the Supreme Court of the United States has sai repeatedly that Pro-Choice outweighs the intrusive nature of No-Choice at all.

Is the Doctor to blame for the choice of the mother? Why do fanatics and harsh conservatives keep blaming the professionals who are using their right to participate in a capitalistic society to earn a living while performing the tasks they were trained to do?

I would like for the reader to understand clearly what I’m saying… I am a Pro-Choice advocate that does not favor the practice of abortions, but that I will always respect the decision made by women to end their pregnancy. Perfect harmony between my moral and legal beliefs.

By the way, Scott Roeder got a “Hard 50″ sentence, which means that he has a sentence of Life in Prison with the possibility of parole in 50 years. After that, he has to serve two 12 month sentences for assault, consecutively. Scott Roeder is 52, which means he will be eligible when he turns 102 (if he gets there).

He was extracted from the courtroom while yelling that “The blood of those babies are on all of your hands”. I disagree, Mr. Roeder…. The blood of Dr. Tiller is entirely in your hands. There is no justification for premeditated, cold blooded murder.

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Charles

Twitter: @charlesgustave @business_legal

Phoebe Prince’s death – Gross Criminal Negligence

I seldom blame “only” the bullies, since the parenting factor has to enter into consideration when your kid is unattended, however, the Phoebe Prince case in Massachusetts makes me reconsider my personal generalization of the matter.

Phoebe Prince was just the victim of the new version of the cruel kids.  A freshman from Ireland, that had a crush on a kid from the school, and dated him, only to be subjected to attacks and humiliation from that kid and his friends.  What makes this case worse? School officials had knowledge of the attacks against the girl, and did absolutely nothing.

The abhorrent indifference demonstrated by school officials and the bullies’ parents in this case makes me wonder who was in charge of raising these kids.  The only answer I can come up with is: Nobody.

Kids have been cruel forever.  There is always the classification of cool, geek, loser, and other nasty wording not relevant to this post, but the fact of the matter is, that these situations served as a starting point for the discipline of the bullies.  Punishments, suspensions, expulsions, no TV for a month.  I’m wondering what is happening to parenting nowadays.  I’m not yet a parent, however, I was a kid and I remember situations like the ones described in this school from South Hadley, Massachusetts.  School officials need to address why they did nothing prior to the death of Phoebe.  They have to come forward and say what actions, if any, they took to prevent this after Phoebe’s mother went to school and spoke with the Principal and teachers about what was happening to her daughter.  Phoebe’s mother was proactive, what’s the story with the school system?

There is the mother of one of the girls that was indicted for civil rights violations resulting in bodily injury, stalking, among other things, just saying that girls were being girls, and that her daughter was never physically violent against Phoebe Prince.  She went as far as saying that Phoebe was the one that verbally abused her daughter.  It is very easy to speak ill of the dead, however I understand her anger and disappointment in this matter.  But where was she when the school did nothing to discipline her daughter?  Where was she when Phoebe allegedly verbally abused her daughter?  Did her daughter came forward at the school because Phoebe verbally abused her? (Please read this story published in the Boston Herald.com, titled: Suspect’s mother: ‘My daughter never fought with Phoebe Prince’)  In fact, in that article, the mother of one of the indicted girls, who because she is a minor and will be tried as a youthful offender I will reserve her identity, even though the article does not, manifested that her daughter admitted that, when Phoebe Prince was walking towards her home the afternoon of January 14th, 2010, she pointed her finger towards Phoebe.  Apparently that was interpreted by Phoebe as intimidating, given the fact that she got home and got inside of her room and hung herself.

Furthermore, there are two boys here charged with statutory rape.  I don’t know the amount of evidence that there is available to prove this matter, but I’m guessing that someone spoke against them.  And my worry is that Phoebe Prince was just 15 years old.  She was just trying to fit in, and her classmates made it a real living hell.  That deserves more explanation than “boys will be boys”.

I feel as Jodee Blanco does with regards to this case.  Jodee Blanco is an activist against school bullying having being a victim herself.  She wrote:

“While I mourn this young girl’s loss with my whole heart, none of us can do anything for Phoebe now. But it’s not too late to save the next one and the hundreds after that and then the thousands after that. That’s something we can do. And make no mistake. What happened at Phoebe’s school is not rare. It is far more common than you may realize.”

The rest of her column can be read in CNN.com’s “I know the terror Phoebe felt”

This case can be distinguished from cyberbullying.  With cyberbullying, the victim’s parents are also to blame, since the access to the Internet can and must be regulated by the parents, while educating the minor on the uses, advantages, and disadvantages of the world wide web.  Eternal vigilance must be had for these kids.

But the bullies in this case were crude, cruel, and soulless.  Instead of a warm welcome, they gave Phoebe a cold and heartless slap on her face, that resulted in the end with the loss of what might have been a great human being.  A productive life, laid down to rest in Ireland because some kids decided that it would be fun just to make fun of her, or that it was fun to humiliate her.  This has to stop.

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Charles

Twitter:  @charlesgustave              @Business_Legal

Health Care Reform – Can we keep the senseless talk behind?

On Sunday, in a historic vote, the US House of Representatives approved the Senate’s version of the Health Care reform bill, subjected to a few ammendments that have yet to pass for reconciliation.

Yet I keep listening to the hype about socialism, and tyranny and all that Communist language set forth by the Republican opposition to the bill. Like it was a secret that Obama was going to push for this bill. And furthermore, stop acting like it is bad!

Millions of Americans die because of crappy health care services, since they can’t afford it. And of course there are the pompous high society members that can afford it. God forbid we tax them so everybody can have the basics…like decent health care when needed the most. You see, I may frown upon the taxing of Americans to give a private education to low income earners. But to get decent health care, I wouldn’t think twice.

We need for Americans to understand that even whenhaving the most capitalistic society, Health Care is a matter that has to be available to all, without regards of the income of the person. Nobody deserves to die because they can’t afford health care. It’s inhumane, and it is not dignified of an American. We are supposed to be an advanced society.

Let us act accordingly!

Bahamian Trip Shows Crude Reality of Our World

If I thought at one time that I was going to get away from the vast problems of reality in Puerto Rico by only getting on a cruise ship to the Bahamas…. Guess again Charles!

In Nassau, Bahamas, there is a manifestation in front of Parliament where one leader of the Hotel Workers’ Union claims that she won, but the Courts of the Commonwealth claim the contrary. Like every teamster manifestation and work stoppage strategy, they are not letting the legal branch finish the appropiate remedy.

That is just wrong for tourism over here. Likewise when Puerto Ricans do the same thing at the exit of the International Airport. They don’ realize they are just biting the hand that feeds them. Tourism is bad both in Bahamas and Puerto Rico, but locals keep getting it worse.

Driving over here in Bahamas should come with a handicap level and a prize for the ones that survive. It’s crazy out there!! Since everybody drives like crazy out here, getting DUI tickets might not even be a possibility. Even policemen are dressed up to the nines.

It is cold, but tolerable. I’ll try to write before Friday, but no promises. Internet access is like healthcare in the US….. Expensive and scarce!!

Charles
Twitter – @business_legal @charlesgustave

The Nobel Peace Prize Winner to Launch an Attack on Yemen?

President Barack Obama is about to decide whether to bomb Yemen or not, in retaliation for the attempted terror attack during a Northwest Airlines flight on Christmas Day.  Of course, that is the logical response after an “attack” like we had last Friday.  But, isn’t it a contradiction?

The Nigerian that had explosives sewn unto his underwear had given all the signs that he was a fundamentalist on a Jihadist path.  Even his father ratted him out in the US Embassy in Nigeria.  How did he got inside a plane is way beyond my pay grade, but surely makes me think that we have a Central Intuitive Agency, instead of an Intelligence one.

Attacking Yemen will in no way resolve the issue.  We have to solve it from inside.  The threat lies within us since we have all the tools to secure to the most of our abilities our country.  Let’s make ourselves better, rather than make others pay for things we “think” they did.

Mr. President, think things trhough!!!

Charles

Twitter – @business_legal                 @charlesgustave

Terror in the Sky for Christmas Day

What a Christmas Day!! A Nigerian national, just 23 years old, had in mind to blow up a plane in mid air. The flight, that originated from Amsterdam, was abruptly disturbed by the African terrorist wannabe, that started to ignite, and apparently did ignite, a firecracker style explosive, in an attempted suicide bombing attempt.

The guy is being interviewed by authorities.
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Charles
Twitter – @Business_Legal @charlesgustave

Economic Crisis my Behind!!

There is actually no way on Earth that Puerto Rico is going through an economic crisis like it has been reported before. I mean, those economists must be mad. Those Ph.D’s they’ve got are a fake. How can there be any kind of crisis when the shopping malls are filled up to capacity? Something doesn’t add up.

The last nine months have been a perpetual up and down routine between the Government and the citizenry, fighting over who has to carry the burden of a flaky economy, while the month of December has been everything but critical in the stores. A short trip to a shopping center these past three weeks may prove that the economy…..(undrground economy) is alive and well. Despite being reported in critical condition. How can that happen?

Crisis theory supporters say that this is possible because those employees that were laid-off in November are still working due to legal proceedings. Therefore, these emoloyees still have their revenues available to use this Christmas season. But these emoloyees are still going to lose their jobs in two months!! So what happens then? Why didn’t they save?

Our society is running on fumes of what it desires to be. We think that money provides for everything. But it does nothing for the emotional part of life. We have to stop thinking that money is everything and focus on our families and friends.

Maybe then we will be a happier society…

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Charles
Twitter – @business_legal @charlesgustave

NOTA Brings Pride to our Island by Winning NBC’s The Sing Off

On Monday night, Puerto Ricans all over the world rejoiced when the a cappella singing sensation Nota received the vast majority of the votes to win the first edition of the reality competition.

They received $100,000 and a Sony Music recording contract.

Congratulations!!! You can follow Nota in twitter @notacappella

Charles
Twitter – @business_legal @charlesgustave

Tiger Woods….Say it Ain’t So!!

Tiger Woods was the standard setter in the sports industry. African American, born to an interracial couple, college educated, professional golfer, advertisement contracts, happily married, proud parent…… It seemed like a fairy tale.

How come we’ve had to hear from the news the term TigerGate? The guy has had as many lovers as holes in a golf course. His trustworthiness both in personal life and in the advertisement arena is being questioned by high executives, and those who thought he was a role model are dissapointed.

Personally I don’t think of Tiger as a role model, he is a great golfer who makes a ton of money. But he is as human as I am. Although his faithfullness towards his wife has not been one of his strong points. Everybody has found Tiger’s weak spot, and as expected, it wasn’t in a golf course. He likes women, and women like him. Is he less of a person for doing that? Is he less of a golfer?

I understand that sponsors like Accenture decided to drop him, since that is a consulting firm that originated as an accounting and auditing firm, where truthfulness and faithfulness are key. On the other hand, his sponsors are going to be okay. The others are based on his golfing career rather than his indiscretions.

His divorce will be one of the costliest in the sporting industry. But his disastrous personal life shall not have the effect they are forecasting for his professional one. He is a money making machine. He thrives on championships. He will have to give out some millions, which in the long run will be recovered again.

This in no way affects the world’s business so networks please, stop talking about this like it was important to us.

- Charles
Twitter – @business_legal @charlesgustave

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