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‘Tax amnesty tolerates bad behavior’
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Posted on Nov 17 2005
The Saipan Chamber of Commerce said it has never agreed to the implementation of a tax amnesty since it tolerates “bad business behavior.”
SCC outgoing president Alex Sablan said that a tax amnesty “does not level the playing field.”
“Our members are responsible tax payers. We pay our taxes on time. What this amnesty does is cater to those who don’t pay timely. We should not have it anymore,” he said.
Sablan said that what the Department of Finance needs to do is hire more personnel to collect taxes.
“They need to hire a sufficient workforce. The government needs to enforce its laws. As it is, with tax amnesty, some people are getting a free ride. The chamber has always rejected that idea,” he said.
He said that if the government allows businesses to incur so much debt, “they [government] are not doing their job.”
“In the end, they’re allowing an unleveled playing field. This is what we’re talking about as an anti-business climate,” he said.
Authored by Rep. Clyde Norita and Vice Speaker Timothy P. Villagomez, Public Law 14-90 aims to provide for a six-month amnesty for tax delinquents. The program began last Sept. 30.
During this period, concerned individuals or entities are allowed to settle their outstanding tax obligations with the government without penalty.
The law was enacted even as the government had just implemented a 120-day tax amnesty period from September 2004 to January 2005. The Legislature had also passed a tax amnesty bill years back, during the 12th Legislature.
Authors of the program said tax amnesty is still the most cost-effective way for the government to collect tax revenue during difficult times.
The 2004 tax amnesty program generated $2 million. It is estimated the government would get another $2 million from the existing program.
