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House OKs another tax amnesty program
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Posted on Aug 28 2005
Saying that the two previous tax amnesty programs failed to net all delinquent taxpayers, the House of Representatives has passed a bill that aims to grant another 180-day amnesty period in the CNMI.
Authored by Rep. Clyde Norita and Vice Speaker Timothy P. Villagomez, House Bill 14-372 said that “a third amnesty program should be established because an amnesty period is still the most cost-effective way for the government to collect tax revenue during these difficult times.”
If enacted, the proposal would allow taxpayers to settle their outstanding debts with the government without paying penalty and interests.
Last year, the Legislature and the Executive Branch enacted Public Law 14-28, which took effect for 120 days beginning on Sept. 21, 2004. Finance Secretary Fermin M. Atalig said the government met its target collection of $2 million from the 2004 tax amnesty law.
Before this, the government enacted Public Law 12-51, creating a 120-day tax amnesty program that took effect on May 7, 2001.
In signing P.L. 14-28 last year, Gov. Juan N. Babauta said he would not support similar measures in the future.
“It is imperative, however, that I set forth in unequivocal terms that, although I am confident that this tax amnesty program is necessary to address the economic realities facing individuals, businesses and the CNMI government, I will not support any further granting of any such amnesty program,” he said.
He said those who fail to settle their tax obligations during the 120-day period would face stringent enforcement actions by the Attorney General’s Office and the Division of Revenue and Taxation.
P.L. 14-28 was introduced by Reps. Oscar M. Babauta and Ray N. Yumul, through House Bill 14-114.
Villagomez and Norita, meantime, said that, except for the duration of the amnesty period, the provisions of H.B. 14-371 are identical to those of P.L. 12-51 and P.L. 14-28.
The bill now goes to the Senate for action.
