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‘Emergency cases only for rebates’
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Posted on Jun 05 2006
The Department of Finance is currently issuing rebate checks for emergency cases only, according to Finance Secretary Eloy S. Inos.
In an interview, Inos said that the Finance Department is still catching up on paying tax refunds for fiscal year 2004.
But due to the government’s financial situation, priority is being given to taxpayers who have bona fide emergency needs, he said.
The Finance secretary has the authority to determine who receive their tax rebates first. Requests for priority issuance of tax rebates are decided based on availability of funds and the legitimacy of the request. Special cases such as death in the family or medical emergency are normally given major consideration.
Inos added that 2005 tax rebates are not being processed at all. The deadline for submission of 2005 income tax returns ended in April 2006.
“It’s still too early in the stage to start processing the 2005 rebates. There’s still a lot of work to be done,” Inos said.
Several officials and community members have called for a tax rebate reduction in order to save the government some funds. But the local business community has strongly opposed this, saying that the tax refund system plays a vital role in attracting investors into the Commonwealth.
Under the current tax rebate structure, taxpayers with a rebate base of $20,000 or less receive 90 percent of the base. Those with a rebate base between $20,000 and $100,000, receive $18,000 plus 70 percent of the rebate base over $20,000.
The last category, which consists of taxpayers with a rebate base of over $100,000, currently get $74,000 plus 50 percent of the rebate base over $100,000.
