Class action lawsuit filed for tax refunds

by Mindy Aguon

Guam - A class action lawsuit was filed in the District Court late Friday seeking a judgment ordering the Government of Guam to pay tax refunds owed to residents. Attorney Ignacio Aguigui filed the suit on behalf of Rae and Jeff Paeste and Sharon Zapanta and all other taxpayers who have been waiting to receive their income tax refunds. 

The plaintiffs filed timely and valid annual income tax returns through the Guam Department of Revenue & Taxation and the government has not paid the refunds since at least 2006 to the present. Court documents state that the class, which includes all taxpayers who are waiting for their refunds and have not been given a notice of disallowance of claims by the government, will continue to suffer economic hardship because of the government's continued failure to promptly pay refunds. 

On Monday Governor Eddie Calvo announced that his administration intends to borrow money to pay the more than $269 million that is owed to island taxpayers.  The lawsuit is seeking a judgment forcing the payment of refunds as well as attorney's fees.