‘Hire retired tax enforcers to augment Tax Collection Task Force’

Sen. Celina R. Babauta (D-Saipan) believes that former or retired tax enforcers and collectors of the Department of Finance should be rehired to beef up the tax collection enforcement and collection activities of the Tax Collection Task Force and thereby get as much as possible of the $121.4 million in outstanding tax collectibles.

Babauta introduced Friday Senate Resolution 23-09, urging Gov. Arnold I. Palacios and the Tax Collection Task Force of the Department of Finance to put to use all qualified human resources to conduct its tax enforcement and collection activities.

Babauta stated in the resolution that using experienced former and retired tax enforcers and collectors will maximize tax collections because they can conduct tax enforcement and collections and train existing or new personnel at the same time.

In order to increase the anticipated revenues of the CNMI for fiscal year 2024, Palacios had proposed to establish a Tax Collection Task Force to aggressively collect taxes due from the past 10 years, in addition to a proposal to increase the Business Gross Revenue Tax. Palacios has also authorized an inter-governmental agency collaboration to conduct the enforcement of tax laws and collection of tax revenue.

Babauta said, however, that tax enforcement and collection require experienced and skilled personnel who understand tax laws and regulations.

Last July 14, Finance Secretary Tracy B. Norita disclosed to the Senate Fiscal Affairs Committee that Finance has $121.4 million in total outstanding collectibles from account receivables from the past 10 years, including $30 million in employee quarterly withholdings that were not remitted by employers. Norita said the Tax Collection Task Force has set an initial target of collecting on these outstanding receivables within 180 days.

Last Friday, the House of Representatives adopted a Senate joint resolution introduced by Senate president Edith E. DeLeon Guerrero (D-Saipan) that requests Palacios to task the Revenue and Taxation with collecting all Business Gross Revenue Tax owed the CNMI government that, according to Norita, has now reached $25.3 million in total outstanding collectibles.

Celina R. Babauta