Tax rebates
will start flowing this week
by Fili Sagapolutele
Samoa News staff
Here's
the good news. Gov. Togiola Tulafono says rebate checks under
the federal economic stimulus law will probably go out later
this week, just in time for Mother's Day.
And now the bad
news. Togiola said some tax filers may end up not getting a tax
rebate because they are claiming children who are not theirs
on their 2007 tax form, a violations of local tax filing law.
The governor
gave the good and bad news during his weekend radio program,
explaining the tax rebate program, and the $20.4 million American
Samoa received from the federal government. He said this is a
one-time shot in the arm to help boost the local economy.
Togiola credited
Tax Office manager Melvin Joseph and his staff for their hard
work fighting to get this $20.4 million for American Samoa after
an original lump sum of less than $15 million was offered by
the U.S. Treasury Department.
The governor
said he has been informed by the Tax Office that about 6,000
tax returns for 2007 are being reviewed and he was also told
by the Tax Office that the first round of refunds will probably
be released later this week.
Joseph had told
Samoa News that the rebate checks will be distributed in alphabetical
order, based on those who filed first, and staggered throughout
the week to prevent overcrowding at the Tax Office.
Prior to release
of any tax rebates, Togiola said ASG needs to make sure that
the tax filer qualifies to receive the money. He said eligibility
and qualifications criteria check and recalculation by the Tax
Office are required.
The economic
stimulus law provides eligible tax payers, who receive a minimum
of $3,000 a year in income, with payments of between $300 and
$600 per tax payer and $300 per qualifying child. A social security
number is also required to qualify for a tax rebate check and
the person must file his/her 2007 tax return.
Determination
of a qualifying child, is based on the Child Tax Credit law.
Samoa News reported
in March that several local residents have returned to the Tax
Office to file an amendment to their tax returns. The changes
include certain children (dependents) under the age of 17 to
reflect that these are their children. The change is to ensure
that the tax filer gets the amount received under the stimulus
package.
According to
sources, tax payers are claiming other people's children and
now parents want to make sure they get the money coming from
the stimulus package.
On his radio
program, Togiola talked about the problem, saying it's an illegal
practice and against the law when "you claim someone else's
children" if you didn't care for these children last year.
The governor,
however, didn't say if those who violate the law will be charged
or prosecuted by the government.
Togiola acknowledged
that families have the habit of giving their children's' name
and social security numbers to other family members to claim
in their local tax filing to avoid, among other things, paying
back taxes owed to the government.
Because of this
discovery that people are claiming other people's children, Togiola
said this means the Tax Office will need to go back through their
records for review of past years.
Togiola said
tax fillers involved in this illegal practice may end up not
getting any money for the child they have claimed, and lose out
for being dishonest.
The governor
says that this is just one issue the Tax Office is trying to
resolve before the tax rebate checks are released. He said ASG
needs to make sure everything is done in accordance with provisions
of the stimulus package law, or else American Samoa will, once
again, end up having to pay back money to the federal government.
Reach the reporter
at
fili@samoanews.com
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