Victory for taxpayers in refund lawsuit

by Mindy Aguon

Guam - The Government of Guam must pay out tax refunds - and do it fairly. District court Judge Consuelo Marshall today ruled in favor of Jeffrey and Ria Paeste and Sharon Zapanta and taxpayers who sued the government over late and expedited tax refunds. 

The parties now have until September 21 to craft a permanent injunction that spells out when and how GovGuam will pay refunds. The island's public sector has argued that the Internal Revenue Code does not present a specific timeframe for refunds to be paid out, but the judge indicated in court today that the injunction could impose a specific deadline, such as six months, for refunds to be paid out. 

If the parties are unable to come to agreement on the specifics of the injunction, the taxpayers must file a proposed injunction by September 21.  Magistrate Judge Joaquin Manibusan has been tapped as a federal mediator to assist in resolving the matter.