DOF ASSURES ON-TIME PAYMENT $12 million now in rebate trust fund

All indications are pointing to the on-time release of tax rebate and refund checks this year with the government drawing near to fully replenishing the special rebate trust account, according to Finance Secretary Lucy Nielsen.

Ms. Nielsen said the government has so far deposited at least $12 million in the special rebate trust account, which was almost empty when the administration of Gov. Pedro P. Tenorio assumed office in January 1998.

When the Teno Administration assumed office in January last year, the Transition Committee had uncovered that the special trust fund has dipped to $2 million when it should have been at $31 million as of end-1997.

The $12 million which has been set aside by the government and deposited to the special trust account is almost 50 percent of the anticipated rebates and refunds during this tax year.

Ms. Nielsen said the CNMI government issued about $30 million in total rebate and refund checks for both individual and corporate taxpayers last year.

With income tax filing period still several weeks away, the DOF secretary is confident the government will be able to raise the entire amount to pay for both tax rebates and refunds before the payment deadline.

Existing local laws oblige the government to release all refund and rebate checks by November.

She said the finance department has completed computing and issuing the W-2 forms, while it has finished printing the needed 1040EZ-CM income tax forms.

Finance experts at the Revenue and Taxation Division has been prepared to handle the anticipated volume of tax returns this year, according to the DOF chief.

She stressed that measures have been put in place to prevent any repetition of what happened in 1998 when the government undertook a change in tax period from the fiscal to the calendar year.

The government’s issuance of rebate checks was delayed for more than two months during the last tax year. In 1998, the first batch of rebates was released in August when it is normally mailed out during the month of May.

The delay was apparently caused by the unavailability of income tax return forms which were issued April. The finance department usually segregates the tax returns filed by those who have outstanding financial liability to the government.

Mr. Tenorio has consistently assured that all rebate checks will be out by October, or before the mandated deadline, adding that there is no way the government will fail to release the money since it is guaranteed by existing laws.

The governor said the government’s financial managers have been instructed to set aside available funds to the Special Rebate Trust Fund in order to ensure that the money will be available.

He said works are now underway to improve rebate processing system, adding that his administration is determined at giving out income tax forms as scheduled to give DOF enough time to process and release the checks promptly.