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No funds yet for EIC, governor says
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Posted on Jan 28 1999
Gov. Pedro P. Tenorio yesterday admitted that his administration has yet to identify funds to pay some $6 million in Earned Income Credit to taxpayers which have been held up since last year due lack of resources.
The financially-troubled government owes taxpayers millions of dollars in EIC covering tax year 1997, but the governor assured the people that they will receive the credit once the money is available.
“We are still identifying the funds,” Tenorio said, as he promised that his administration “will comply with the law to pay the EIC to those who are entitled to receive it.”
The governor previously said his finance officials were beginning to rebuild the special rebate trust account to make sure that people receive on time their rebates covering tax year 1998.
The government last year spent close to $30 million to pay out the people’s rebates and refunds for 1997.
Due to a shortfall in the special rebate trust account, repayment of rebates for last year’s tax was delayed. In the past, EIC, rebates and refund were released in the month of May in lumpsum. Checks were not released until August in 1998 due to cash shortage.
Finance officials said the three were issued separately to enable them rebuild the special account, which had been found almost depleted after the new administration took over.
Money in the rebate trust account amounted only to $2 million when it should have been at $31 million as of end-1997.
The release was further delayed due to amendments in the tax laws late last year that expanded the tax rebate base.
