Despite a record-breaking revenue collection of more than $100 million in fiscal year 2014, the government is still concerned with the large number of both businesses and individuals not filing their tax returns.

Due to this concern, the government is now working on a new program that would require foreigners allowed to work in the territory to provide proof of tax returns being filed before renewal of their immigration I.D.

In his Fono address, Gov. Lolo Matalasi Moliga said the government collected a record amount of revenue at $100.21 million — but later in his address the governor revealed that ASG is still faced with the problem of individuals and businesses not filing tax returns.

According to the governor, the Treasurer and the new Tax Manager are aggressively pursuing individuals and businesses who have not filed taxes. Additionally, tax audits have been conducted with companies such as ExxonMobil, Clipper, Sunrise, and other companies doing business in American Samoa.

He also noted that the Treasurer has just returned from Washington D.C. following up on these audits and other tax matters with the U.S. Internal Revenue Service (IRS).

Lolo went on reveal that the Treasurer and Tax Manager are responding to his request to work with individuals who currently owe money to the American Samoa Government to settle their outstanding taxes by providing incentives to reduce their tax burden.

“These aggressive tax collection steps will be continued in 2015 and it might be necessary to change our tax laws to compel every working individual to file taxes at the close of each tax year,” he said “It is also the intent to predicate the issuance of a license renewal only when the company has presented verification that taxes have been filed.”

Another revelation made by Lolo is that a policy is being contemplated by government to require all immigrants entering the territory under the special corporate provision to present verification that his/her tax has been filed before the immigration status renewal is reviewed and granted.

All immigrants who are working in the territory will be subject to this new policy that is currently being developed, he said.

Lolo said the above initiatives "reflect our attempt to ensure compliance with our existing tax laws, with the hope to generate more revenue."

He also explained that the review of businesses which were issued business licenses but did not file taxes revealed that in 2013, some 3,416 businesses operated legally,with 1,723 categorized as individual companies. Of this number, only 582 — 33.8% — filed taxes, while 66.2% did not file taxes.

“The same phenomenon existed and is deemed prevalent with individual tax filers, with the majority of employed workers who did not file income tax returns,” he said.

A handful of lawmakers told Samoa News after the governor's address that they will be requesting the Treasury Department — through the Legislative Financial Office — to provide breakdown details of the amount of revenues collected in taxes from businesses and individuals.

The lawmakers are also interested in details of how many workers filed in calendar year 2012 compared to calendar years 2013, and 2014.

Corporate and individual tax filings are ASG’s largest revenue source.