By Mar-Vic Cagurangan
Variety News Staff

OVER 11,000 checks worth a total of $10.3 million for initial payout of the earned income tax credits were mailed yesterday in compliance with the $90 million settlement agreement approved by the federal court earlier this y ear, the governor’s office announced yesterday.
Revenue and Taxation director Art Ilagan said his department sent checks to 234 EITC claimants, amounting to $307,000 for tax year 1997, and 11,557 checks amounting to $10 million for 1998 claims.
“The amount of each check depends on how much they claimed and how much they are qualified for,” Ilagan said.
The EITC funds came from the money set aside by the Department of Revenue and Taxation as stipulated in the agreement, Ilagan said.
Under the settlement deal, the government of Guam agreed to set aside for EITC payments 15 percent of the money earmarked for tax refunds.
The checks mailed yesterday comprised the first set of EITC payments since District Court Judge Frances Tydingco-Gatewood gave the nod to the compromise deal that settled the two class actions filed by Julie Santos and Charmaine Torres against the government.
The settlement agreement was signed on May 26, 2006 and approved by the federal court last January. The immediate payout of $10 million for the 1997 and 1998 EITC claims was a component of the court’s order.
“The processing of the EITC claims for tax years 1995, 1996 and 1999 through 2004 will continue as stipulated in the agreement,” a press release from the governor’s office stated.