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Gov’t plans to go after tax delinquents
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Posted on Dec 22 1998
In what appears to be a desperate move to shore up the sagging local coffers, the administration is training its sight on delinquent taxpayers whose financial obligations to the government have grown to $19 million over the years.
The plan to collect tax delinquencies is among the steps being considered by Gov. Pedro P. Tenorio’s advisers to raise the much needed cash resources amid declining revenue collections.
Such move, if implemented, would be the first in recent years when past governments could afford to ignore unpaid taxes because the tourism-led economy was prosperous.
There were no available figures on the number of taxpayers who still owe the government some money.
However, some administration officials are worried that running after taxpayers would defeat the purpose of collecting money for the government.
“It is a good plan if the economy is not suffering. Some of these taxpayers could just easily file bankruptcy and that’s the end of it,” said a well-placed administration source who declined to be identified.
The year-long financial upheaval in Asia, where the Northern Marianas largely depends for tourists and foreign investments, has forced a number of business establishments in the islands to file bankruptcies or scale down operations.
This has substantially reduced revenue collections of the government which is threatening to imperil delivery of basic services to the community.
To deal with shrinking cash, the financially-troubled has sought legislative approval to repeal existing laws that would further deplete the local coffers.
Early this year, the government has convinced the Legislature to increase the user fee imposed on local garment manufacturers as well as license fees charged to poker machines to raise government funds.
The third senatorial district recently approved a proposal seeking an additional $2,000 increase on poker license fees. The bill is awaiting the governor’s signature.
