‘No deliberate intent to evade over $1M in taxes’

In response to the recent tax lien filed against him by the CNMI government, Vincent DLG Torres, the eldest brother of former governor Ralph DLG Torres, clarifies that there was no deliberate intent to evade paying his taxes. Rather, it was due to discrepancies that he was not made aware of for years.

The CNMI’s Division of Tax and Revenue recently filed a tax lien against Torres stating that the lawyer owes the CNMI over $1 million in relation to unpaid taxes dating back to 2014.

Although technically true, Torres clarifies that it was due to discrepancies found on his previous tax returns and it was not brought to light until he hired an accounting firm just a few years back.

 “A few years ago, our accountant moved back to her country. So, I hired an accounting firm here on Saipan to file our taxes for the year. I was informed that there was a discrepancy with the filing of the previous year that needed to be amended. So, being concerned with good conscience, I voluntarily gave clear instruction to review all my financial documents from 2013 on to find out if there were any discrepancies. The accounting firm found discrepancies, so I told them to amend and file my taxes with the CNMI government immediately even if it means I will end up paying so much more. It was the right thing to do,” said Torres.

After finding the discrepancies, Torres said he and his new accounting firm filed amendments to his previous tax returns totaling $780,394.19, plus $394,702.65 in late fee and interest for a total $1,175,096.84.

Torres stated that he has already worked out a payment plan with the government and expects to pay off the debt within the year.

“I have already entered into a payment plan with the government, which I am up to date with my payments.  And I plan to pay off the entire tax within a year. Had I not voluntarily took action to fix and amend my taxes, this would not have been an issue today. This was completely not a deliberate intent not to pay my taxes. Many individuals and companies enter into an agreement with the government to pay their taxes and never made it to front page news. I’m the lucky one politically,” he said.

According to the notice of tax lien filed with the District Court for the NMI and the CNMI Superior Court by Richard Santos, manager of the Collection and Remittance Branch of the Division of Revenue and Taxation, demand for payment of this liability has been made, but it remains unpaid.

“Therefore, there is a lien in favor of the Commonwealth of the Northern Mariana Islands on all property and rights to property belonging to the taxpayer for the amount of these taxes and any additional penalties, interest, and costs that may accrue,” the tax lien notice said.

The tax lien also stated that Torres owes a total of $1,175,096.64 in taxes dating back to the tax period ending Dec. 31, 2014.

Santos elaborated that for tax year 2014, Torres carried an unpaid balance of $73,537.68; for tax year 2015, his unpaid balance was $564,156.23; in 2016, it was $182,293.11; in 2017, $123,113.42; in 2018, $166,844.61; in 2019, $6,411; and in 2020, $58,740.25.