Dr. Shapiro: The Treasury Secretary Has Unilaterally Abandoned the 2012 Agreement with Doral
WASHINGTON, June 9, 2014 /PRNewswire-USNewswire/ -- Dr. Robert Shapiro, advisor to Doral Financial Corporation, released the following statement in regard to Friday's decision by the Puerto Rico Supreme Court to order the Court of First Instance to conduct an expedited process toward the resolution of Doral's litigation with the government.
"Friday's welcome action by the Supreme Court should help both parties get on with resolving this issue. The government of Puerto Rico signed an agreement with Doral Financial, and such agreements should be honored. Given the clear language in the agreement signed by both parties, it's time for the government to negotiate with Doral," said Dr. Shapiro.
Dr. Shapiro added, "Secretary Acosta has unilaterally abandoned the 2012 agreement with Doral, as the agreement specifically prohibits such action."
An agreement signed by Doral Financial and the government of Puerto Rico in 2012 recognized Doral's legal claims to a tax refund reflecting overstated income and overpaid taxes. The signed agreement contained a provision which said, "The Matters in this Closing Agreement will be final and conclusive, and will not be re-opened, annulled, modified, set aside or disregarded by the taxpayers, nor the Secretary, nor any civil servant, employee or agent of the Commonwealth of the government of Puerto Rico."
On Thursday, June 5, 2014, Doral Financial, filed a lawsuit in Puerto Rican courts, declaring that the government illegally nullified its agreement to pay the bank over $200 million in tax overpayments. Doral filed this lawsuit after the government of Puerto Rico rebuffed previous efforts to reach a resolution.
On Friday, June 6, 2014, The Puerto Rican Supreme Court ordered that an evidentiary hearing conducted by the Court of First Instance take place no later than June 12th, and that a judgment from the court should be rendered no later than June 26th.
Today, Doral posted a copy of the closing agreement between Doral and the government of Puerto Rico. The agreement in its entirety can be viewed at www.DoralPuertoRicoFacts.com.
SOURCE Doral Financial Corporation
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