Treasury Secretary insists on protecting taxpayer confidentiality amid Senate pressure to release Sagardia’s tax returns.

By THE STAR STAFF

Puerto Rico Treasury Secretary Ángel L. Pantoja Rodríguez has emphasized that taxpayer confidentiality remains a constitutional obligation of the Department of Treasury as the agency faces pressure and a suit from the Senate to disclose tax information related to former Justice Secretary Antonio Sagardia.

In a televised interview late Monday, the Secretary rejected assertions that the government has been “orchestrating delays” to give Sagardía time to “fix his numbers,” saying the department’s sole responsibility is to safeguard the privacy of all taxpayers.

“The Secretary of Treasury has the responsibility to preserve the confidentiality of the tax information in our custody,” he said, stressing that no taxpayer data can be disclosed without explicit consent. “This protection has constitutional standing. It is part of the right to privacy that all taxpayers in Puerto Rico have.”

The ongoing controversy stems from a Senate request for detailed tax documents. The Treasury Secretary explained that the government has asked the court to clarify the scope of what can be released while maintaining legal privacy protections. There will be a court hearing next week.

“This is a jurisdiction of law and order,” he said. “We will abide by the court’s determination, but it is important for the court to weigh the balance between legislative investigative powers and taxpayer privacy.”

When asked whether the agency could provide partial information—such as confirming whether a taxpayer filed certain documents—the Secretary said this is exactly what the court is being asked to evaluate.

Pressed on whether Sagardía had amended any income tax returns or informational forms, he declined to answer.

“That is part of what the court must consider,” he repeated, adding that the court will determine whether the department must disclose any such information.

Separately, the Secretary confirmed that Treasury did provide information on reductions in government contracts from 2024 to 2026. He said contract spending dropped by approximately $904 million, a 16% reduction, largely in professional services, consulting, and advertising.

He attributed the cuts to a more disciplined contracting approach promoted by the Governor, adding that similar reductions are expected to continue.

The Secretary said ongoing discussions regarding tax reform are tied to the broader budget process. Any reduction in government spending, he noted, should ultimately translate into taxpayer relief.

With three weeks left in the tax season, the Secretary reported strong progress on tax refunds. He said $1.5 billion in tax refunda have been isaued benefitting 700,000 taxpayers.

He also confirmed that conversations with the Financial Oversight and Management Board regarding the proposed taxpayer relief payment are “well advanced,” though implementation requires formal approval by the Board. He was talking about a government proposal to provide tax relief checks.

“As I’ve said before, the disbursement of this relief must occur after the close of the tax cycle—after April 15—so we can ensure all the necessary information is available,” he explained.