Puerto Rico Seeks Lawyer Tax as Bankruptcy Fees Hit $228 Million

Puerto Rico lawmakers plan to tax the fees collected by legal and financial experts working on the island’s debt restructuring as the cost of the record-setting bankruptcy hits $228.4 million, the lead lawyer working on the case said in court Nov. 7.

Under the proposal, the commonwealth would collect a 29 percent tax on any fees paid for work not done on the island, said Martin Bienenstock, who represents the federal oversight board leading the debt-reduction effort. Most of the top lawyers and financial advisers in Puerto Rico’s bankruptcy are based in the mainland U.S.

Should the tax become law, ...