FOR IMMEDIATE NEWS RELEASE (May 26, 2014 – Hagåtña, GU) – The Department of Revenue and Taxation (DRT) submitted the Income Tax Refund Status Report for the month ending April 30, 2014 to the Guam Legislature on May 16, 2014. Senator Vicente “ben” C. Pangelinan (D), Chairman of the Committee on Appropriations, Public Debt, Retirement, Legal Affairs, Public Parks, Recreation, Historic Preservation, and Land (Committee), continues to express his concerns over the remaining income tax refund liability the government of Guam continues to owe.

Based on the report, there is approximately $73.7 million due to individuals and $9.63 million owed to businesses for a total of $83.33 million still owed by the government in tax refunds.

“The latest RevTax report states that the government of Guam still owes over $83 million in income tax refunds, even though we have paid millions this fiscal year. We cannot let our guard down, or we will quickly find ourselves in a deficit,” stated Pangelinan. “No press release, no weekly address, and absolutely no distorted account of history can wipe away the tax refunds that we owe to our people. With a sizeable tax refund liability still on the books, only strict adherence to the tax refund laws of Guam and no more withdrawals from the Tax Refund Trust Fund will place us on a path in the right direction.”

Pangelinan refers to the almost $50 million that has been withdrawn/transferred from the Income Tax Refund Efficient Payment Trust Fund between FY 2011 to the present for non-tax-refund related things such as operations. Shortly after the almost $50 millionth dollar was taken from the Trust Fund, the Guam Legislature filed a Declaratory Judgment for action on these non-tax-refund related withdrawals. In addition, there is also a tax refund Permanent Injunction that requires that tax refunds are paid in a timely manner.

“If these withdrawals/transfers did not take place, we would have been in a better position than we are in today. The brave taxpayers who filed suit against the governor for the timely payment of tax refunds continues to fight him in the Ninth Circuit Court of Appeals, because the governor has appealed the tax refund Permanent Injunction,” explained Pangelinan.

“We continue to have an over $83 million tax refund liability. Moving forward, I continue to urge the governor for strict adherence to all the tax refund laws of Guam and to stop wasting money by fighting the District Court and the taxpayers with his appeal of the tax refund Permanent Injunction,” concluded Pangelinan

For further information, please contact the Offices of Senator Pangelinan at 473-4236 or email at office@senbenp.com.

 

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