Amount of businesses & individual excise tax liabilities mounting up

Pago Pago, AMERICAN SAMOA — Senate President Tuaolo Manai Fruean has convened a formal hearing to address the pressing issue of excise tax liabilities affecting both businesses and individuals within the community. 

Following consultations with the Tax Office, Tuaolo revealed that a recent letter confirmed the existence of substantial tax debts, with 41 individuals and one business collectively owing over $700,000 in excise taxes. This situation has prompted serious concern among both community members and legislators.

He made these comments during yesterday’s regular session. In light of the sensitivity surrounding the identities of those affected, Tuaolo indicated that a legal opinion was sought on the matter. However, legal counsel has advised that disclosing the names of the individuals and the business involved would not be permissible, which could lead to potential implications for transparency and fairness within the system.

Tuaolo emphasized that if the identities remain undisclosed, the case will be referred to the Senate Select Investigative Committee for further investigation. He reiterated the importance of abiding by the law, emphasizing that there is a singular legal framework that applies uniformly to everyone. Both individuals and businesses must recognize that when importing vehicles and supplies from abroad, they are required to fulfill their tax obligations, including the payment of corresponding excise taxes.

Additionally, the Senate President clarified that, according to the law, the Treasurer lacks the authority to permit partial payments of these taxes. Consequently, should individuals or businesses be unable to pay the excise taxes owed, any ordered supplies or vehicles will be required to remain in the custody of the Customs Office until the outstanding taxes are resolved. He emphasized that the law requires the full payment of excise taxes before goods are released.

Tuaolo also addressed a prevalent concern among the public regarding the perceived inequity in the enforcement of laws across different societal segments. Many citizens feel that justice is often applied selectively, disproportionately benefiting specific individuals or groups, particularly those holding positions of power in government or within local communities. 

This sense of disparity has intensified concerns about the integrity of the legal system and its ability to ensure equitable treatment for all citizens, regardless of their social status or influence.

Tuaolo further emphasized that the government is in urgent need of financial resources to meet its obligations and fund essential services. He pointed out that a significant amount of outstanding taxes remains unpaid, which could help alleviate the fiscal shortfall. Addressing these tax delinquencies is crucial for improving the government's financial situation and ensuring that public programs continue to operate effectively.