Hedge Fund Billionaire John Paulson Not Defecting To Puerto Rico To Dodge Taxes

Closely-followed billionaire hedge fund manager John Paulson's firm released a statement that he has no intention to relocate to Puerto Rico to avoid taxes.

Here's the release:

NEW YORK, March 15, 2013 /PRNewswire via COMTEX/ -- John Paulson, President of Paulson & Co. today announced that, in light of the media attention surrounding a relocation to Puerto Rico, he has no plans to move to Puerto Rico. While Mr. Paulson has considered real estate investments and has vacationed on the Island, he has no plans to establish a permanent residence there.

Earlier this week, Bloomberg News reported that Paulson, who famously bet against the subprime housing market, was weighing a move to Puerto Rico to take advantage of a new tax law.

The new law, Act-22 ("The Act to Promote the Transfer of Investors to Puerto Rico"), incentivizes people to become residents of Puerto Rico by exempting them from income tax on their interest and dividend income and certain long term capital gains from the sale or exchange of securities.

So far, ten wealthy people, including some hedge funders, have taken advantage of the new law, Bloomberg reported.