Finance chief refutes criticisms on delayed rebates

The Finance Secretary dismissed as “wild accusations” the criticism that the administration is playing favorites in the release of tax rebates and refunds.

Finance Secretary Fermin Atalig said in an interview yesterday that the release of the rebate and refund checks is neither dependent on political leaning nor family relations.

“That’s a wild accusation. I don’t know that exists. We’re giving out rebates to people regardless of their political affiliations. It doesn’t make a difference if you’re Republican, Democrat, or Covenant. We’re paying out across party lines,” said Atalig.

This came about after concerned individuals expressed their disappointment with how the Tax and Revenue Division issues out rebate checks. A number of individuals cited that rebate checks are issued to people who are close to the administration and those who work in establishments frequented by top government officials.

“Do we have to serve them first or be close to them? Do we have to beg for our rebates?” asked a resident who requested anonymity.

Atalig said that, while some rebate checks have been issued out based on emergency needs, the government follows the normal procedure for its release.

The normal process, he said, means releasing the checks as soon as the submitted tax documentations are certified as complete, and granted that public funds are available. Thus the release of rebates or refunds does not depend on how early the taxpayer files tax documents.

“It doesn’t guarantee that an early submission results in early release because of some document [problems]. For instance, some forget to include winnings for poker and lottery. So that delays the processing,” said Atalig.

In consideration of some people’s situation, he said the administration has adopted a system to prioritize the release of rebates for individuals facing urgent needs.

To qualify, individuals should make a formal letter to the government, through the Office of Lt. Gov. Diego T. Benavente, justifying that the case is emergency in nature. Usual “emergency cases” include medical treatment, school and housing-related payments, funeral, and the like.

Atalig said the release of rebates is done by batches. Beginning August this year, at least five batches have been paid out, amounting to some $5 million. Another batch will be released before Christmas.

He said rebates or refunds are paid out from the government’s general fund. This includes some of the cover-over tax collected by the local government from the federal government. Cover-over tax refers to the claimed overdue rebate of federal taxes, duties, and fees collected from the CNMI residents since the mid-70s.

The administration said that it has received $2 million worth of such refunds. This amount was used to pay mainly the minimum wage earners or those whose rebates are below $500 or within that vicinity.

Meantime, Atalig said that any funds that get into the Treasury are treated as general funds. “We are accessing the general fund to pay out rebates. And we’re now down to $15 million,” he said.

The remaining debt would be paid out by June 2005.

In previous years, authorities said that rebates or refunds were given out in summer.

The Babauta administration said that when it assumed office in 2002, the Rebate Trust Account was empty.