by Mindy Aguon

Guam - For the next five years, the Government of Guam will be under a permanent injunction to ensure it pays tax refunds on a timely basis. District Court Judge Consuelo Marshall issued the permanent injunction and final judgment on Thursday requiring the government to suspend and discontinue the operation of the Expedited Refund Program. The Department of Revenue & Taxation must prioritize the processing of claims for tax refunds and payment must be made according to the filing date of the claim.

The order requires that beginning on March 1 the government will have to pay tax refunds no later than six months after the filing of the claim for refund. The court outlines the terms of the permanent injunction and the designation of the claims and the timelines to pay those claims that contain errors and those that are subject to audit or investigation.

The court also noted that in six months, should the government not fully comply with the terms of the injunction, the plaintiffs may file a motion with the court requesting appointment of a receiver to sequester government funds, initiate contempt proceedings or seek any other order to ensure compliance with the court order. The Calvo Administration meanwhile issued a statement regarding the permanent injunction noting that tax refunds already are being paid on time and the days when tax refunds were withheld from the people have stopped since December 2011 when the governor committed to paying tax refunds and began paying them out.

Adelup's press release states, "Last year, this year, and for every year that Eddie Calvo is governor, tax refunds will be paid on time. He's proven that commitment. He's proven that he's the elected official with the best pulse on the financial situation of the government. It's easy to talk about paying tax refunds. It's quite another thing to batten down the hatches and put words into action. Governor Calvo was the first to take action to pay tax refunds on time simply because it is the right thing to do. That commitment remains throughout his tenure with Lt. Governor Ray Tenorio."