When a for-profit corporation establishes a subsidiary under the provisions of this subchapter and Chapter XVI of Act No. 144 of August 10, 1995, as amended, as part of a reorganization plan through which the parent corporation, in turn, will be converted to a special employee-owned corporation by means of merger, consolidation or any other method, or with the purpose to segregate a part or segment of its operations, or to liquidate the entity as such, it shall have a maximum term of five (5) years to complete said reorganization and conversion plan. Such term shall also apply to for-profit corporations that amend their certificate of incorporation to convert to a special employee-owned corporation, whose amendment or conversion should also be consigned in a reorganization plan.For these purposes, the parent corporation or special employee-owned corporation involved should, on or before a period of one hundred eighty-three (183) days after effecting the reorganization or amendment, file an application with the Secretary for an administrative opinion to the effect that such conversion meets the requirements contained in Section 1501 of Act No.

ng the reorganization or amendment, file an application with the Secretary for an administrative opinion to the effect that such conversion meets the requirements contained in Section 1501 of Act No. 3 of January 9, 1956, as amended, and said transaction does not have the purpose of evading the payment of taxes. The administrative opinion thus requested shall be issued by the Secretary within a term not greater than ninety (90) days. The Secretary may establish by regulation the information and any other documentation that he/she may deem necessary in order to issue such opinion.The requirement for an administrative opinion shall also be applicable to special employee-owned corporations which do not emerge as a result of a conversion or corporate reorganization, but which have been organized to carry out a new economic activity.In those cases in which the Secretary determines that terms of the reorganization were not complied with within the prescribed time period, this shall constitute prima facie evidence that the sole purpose of the transaction was to evade payment of income taxes of the Government of Puerto Rico, in which case said parent corporation and subsidiary shall be

tute prima facie evidence that the sole purpose of the transaction was to evade payment of income taxes of the Government of Puerto Rico, in which case said parent corporation and subsidiary shall be subject to the assessment, by the Secretary, of the tax corresponding to the years during which said corporation and its members received the benefits of this subchapter. The procedure to be used shall be equivalent to that provided in §§ 33001 et seq. of this title related to the assessment of taxes in jeopardy and pursuant to the regulations that the Secretary may adopt for this purpose. History —Jan. 31, 2011, No. 1, § 1113.12, retroactive to Jan. 1, 2011.