Rebates, refunds to be released in October

The first batch of rebates and refunds for those who filed their income tax returns early will be mailed out by the Department of Finance between October and November this year.

Finance Sec. Lucy DLG. Nielsen assured yesterday that the government has funds to meet its obligations covering tax year 1998, but said others might not be getting their rebates and refunds as scheduled.

“We are looking at October, November really,” she told in an interview when asked regarding disbursement of the checks to taxpayers. “We have six months (from April) under the law to do it.”

DOF has raised more than 60 percent of the estimated $25 million that the government needs to pay out its obligations to taxpayers this year. According to Nielsen, at least $16 million have so far been transferred to the special rebate trust account to ensure prompt payment.

“We have money in the account. It’s not up to the projected amount as we project that we will probably need to pay out some $25 million in rebates and refunds,” she said.

But the finance secretary clarified that not all will receive their checks in October or November because of its “first-in-first-out” policy, which means that those who filed their income tax returns much ahead of the April 15 deadline will be in the priority list.

Asked whether the government will completely wipe out its financial duties to taxpayers by the target date, Nielsen said: “I’m not sure. I can’t say that everybody will get it by November.”

Gov. Pedro P. Tenorio earlier this month has disclosed that DOF has begun final preparation for the disbursement of rebate and refund checks to appease taxpayers who have been asking about their money.

He, however, has not indicated specific date, saying only that the government has until October to do the payment as provided under the law and that the department has yet to input them in the computers.

The governor has in the past reiterated availability of funds to pay out rebates to ease growing fears that their money will be held up again because of the deepening financial woes confronting the government.

Last year, taxpayers did not receive their rebate money until July due to a shortfall in the rebate trust account. In the past, checks for rebates, refund and Earned Income Tax Credit were released in lump sum during the month of May.

The previous administration has largely been blamed for this confusion as the account intended for rebates was believed to have been merged with general funds. When Tenorio assumed office in 1998, the trust account amounted only to over $2 million when it should have been at $30 million.

Short of cash, the government has pushed back release of rebate and refund checks to allow it to rebuild the special trust account.

A total of $28.07 million in rebates and refunds have been paid out by DOF for tax year 1997 to more than 42,000 individual and corporate taxpayers.