DOF eyes hassle-free filing of taxes

In fresh efforts to make filing of taxes a hassle-free process, the Revenue and Taxation Division of the Department of Finance is holding a special seminar that will tackle various issues confronting taxpayers including compliance rules.

The Employers’ Year-end Tax Filing Seminar will be conducted on Thursday and Friday (Dec. 14 and 15), from 8:00 a.m. to 12:00 p.m. at the Joeten-Kiyu Public Library conference room.

The seminar will cover important compliance rules and instructions pertaining to the filing of Forms W-2CM, Wage and Salary Tax Statement, OS-3710, Annual Reconciliation of Taxes Withheld, and W2G Gambling Statement.

The special discussion will also cover important compliance rules and instructions on Magnetic Media Filing of these forms.

Businesses, employers and all payroll service companies are encouraged to participate. DOF said the seminar has a limited seating capacity, as it urged interested participants to confirm attendance at the Administration Office.

The finance department has been working double time to expedite the installation of a new tax system eyed to improve the government’s revenue collection capabilities and reduce margin of errors in the processing of tax returns.

Implementation of the new CNMI tax system is expected to be completed by next year since it is already over 75 percent complete.

The new system will pave the road for the proper collection of revenues, as well as allow the taxation division to reduce the margin of errors in the processing of tax returns.

The new system is equipped with an application security designed to protect all information on it from unauthorized or unintentional access, disclosure, modification or loss.

It also has a high level of integration among its databases and subsystems, and is designed as a single system of highly integrated components. It produces a variety of taxpayer notices that are mailed to taxpayers like renewals of business licenses, filing errors, compliance status, and intent to lie, levy or seize.

Through the new system, any taxpayer owing money to the CNMI is notified of such debt, including penalties and interests. It allows tracking of penalties and interest accrue over time, along with the principle.

The need for a new tax system was first conceived by former Revenue and Taxation Director, and now finance department consultant, Rufin Inos back in 1993.

In 1995, the CNMI government submitted its first request for proposal to the Office of Insular Affairs, which granted $840,000 for the development of the new system in November of 1996. OIA required the CNMI to provide matching funds for the grant.

The contract with vendors for the installation of the new tax system was finalized and signed in December 1999, with the first physical work starting in March of 1998. (AR Fajardo)