Gov't files opposition to proposed injunction - KUAM.com-KUAM News: On Air. Online. On Demand.

Gov't files opposition to proposed injunction

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by Mindy Aguon

Guam - The Government of Guam doesn't think six months is a reasonable time frame to pay out tax refunds from the time they are filed.  The proposal was one of several included in the plaintiff's proposed permanent injunction in the ongoing tax refund class action lawsuit.  The government filed its objections to the proposed injunction.

Assistant Attorney General Kenneth Orcut says six months isn't reasonable even if the government were caught up with paying refunds.  The biggest concern is that the proposed injunction fails to address Guam's obligations to pay $30-40 million owed in tax returns that are already filed much less the $105 million projected shortfall for the payment of 2012 tax returns.  Concerns were also expressed that paying interest when refunds cannot be paid would give taxpayers less interest than the compounded interest provided in the internal revenue code. 

The government stressed that the public interest does not support the permanent injunction and imposing the proposed plan would leave the government unable to provide critical services to the community.

The judge has yet to decide on the government's motion to extend the time to file a proposed permanent injunction.

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