Treasurer Malemo Tausaga has been told to prioritize the payment of tax refunds over other financial obligations of the government.
The Treasurer faced the Senate Budget and Appropriations Committee Wednesday morning for review of a Senate resolution, which calls for the issuance of all refund checks and payment of ASG debts to vendors before the end of the current fiscal year.
Malemo said the Tax Reserve Account in which 25% of corporate taxes are to be deposited to help pay tax refunds did not have any money when they came into office.
He said they are just now starting to deposit funds into the account. Malemo told senators that the government has to rely on local revenue collections to pay for tax refunds and bills for the government.
He said the number of wage earners is 13,166. Treasury has paid out refunds for 10,808 tax filers. Another tax run will be released tomorrow, Thursday, and he believed that all refunds would be covered in four more runs.
The Treasurer also explained that tax filings are based on a calendar year not a fiscal year.
Senator Soliai Tupine asked the Treasurer why there was no money put in the Tax Reserve Account all this time.
Malemo said there was no particular reason, but for now they are trying to put money away for the account as revenues become available.
Senator Tuiagamoa Tavai asked, “So in four years, nothing has been done to set things right with the Tax Reserve Account?”
The Treasurer commented that deductions were not made from corporate taxes to put in the count when they came into office.
Senator Muagututia impressed upon the treasurer that people depend on their refunds for their needs. He urged Malemo to set things right so that by the time they leave office, those who succeed them will not be burdened. In his usual comical style Muagututia said, “We are in the same boat. You don’t know if you will return to office, just like us senators. We do not know if we will come back.”
Senator Malaepule Saite Moliga, who introduced the resolution said wage earners count on their tax refunds for their many needs. He urged that the Treasurer prioritize the payment of tax refunds and to pay up before the end of the fiscal year.
Senator Magalei Logovii asked the Treasurer if deductions for retirement and FICA were up-to-date, and the response was they are up-to-date.
Senators approved the resolution which requests the Governor to direct the Treasurer to settle all outstanding tax refunds, and to pay private vendors before the end of the fiscal year.
