Guam – Senator Ben Pangelinan is calling for the $24 million dollars reimbursement for the “Additional Child Tax Credit” [ACTC] to be used now to start “the process of paying out the unpaid Tax Year 2011 Income Tax Refunds.”
In a release, Pangelinan points out that the reimbursement from the Federal Government was recently received by GovGuam and he says that “Public Law 31-76 requires that 90% of that money be directed to pay Income Tax Refunds.”
In response, the Governor’s Communications Director Troy Torres today said that the money would not be used to pay 2011 tax refunds. Instead it is being set aside to pay for 2012 refunds, which is also required by law.
Torres said that the plan for paying the 2011 refunds remains the same and that is to issue the Series B Bond. He told PNC News that the Administration hopes that Pangelinan’s request for the $22 million in ACTC funds to be spent on refunds is “not a veiled attempt to shoot-down the tax refund bond.”
Legislative approval is still necessary for the issuance of the Series B Bond.
The Legislature is scheduled to go into session next week.
READ Senator Pangelinan’s release in FULL below:
SENATOR PANGELINAN ANNOUNCES $22 MILLION IN CASH FROM ACTC REIMBURSEMENTS AVAILABLE TO PAY REFUNDS
FOR IMMEDIATE NEWS RELEASE (February 9, 2012– Hagåtña) – Senator Vicente (ben) Cabrera Pangelinan (D), Chairman of the Committee on Appropriations, Taxation, Public Debt, Banking, Insurance, Retirement & Land (Committee) is urging Department of Revenue and Taxation Director John Camacho, to begin the process of paying out the unpaid Tax Year 2011 Income Tax Refunds with the $24 million Additional Child Tax Credit Reimbursement the government of Guam received from the United States Treasury on January 30, 2012.
“The government of Guam received approximately $24,452,857.03 from the U.S. Treasury and Public Law 31-76 requires that 90% of that money be directed to pay Income Tax Refunds,” stated Senator Pangelinan. “I am reminding Director Camacho of his duty to comply with the law which will certainly decrease the government’s Income Tax Refund liability.”
Senator Pangelinan is concerned with the recent comments by the Department of Administration Director Benita Manglona regarding her not setting-aside funds to pay for Tax Year 2011 Income Tax Refunds. “This is very concerning to me. We received $24 million in cash and the Director is saying that she is not setting-aside money to pay tax refunds for 2011. This money belongs to the people not the Department of Administration.
It is no wonder that DOA is refusing to provide the cash reports mandated by the law introduced by Governor Calvo when he was in the Legislature.
Where is the cash going?”