By Cherrie Anne E. Villahermosa
Variety News Staff

TWENTY-NINE taxpayers have taken the Department of Finance and the CNMI government to court for its failure to pay over $24 million in tax rebates from 2002 to 2005.
Amanda Armstrong, Hui Min Zhao, Xiu Zhen Qi, Mei Lian Chen, Edward Lieberman and others identified only as “John Does 1-24” filed the class action lawsuit on Friday.
The plaintiffs, through attorney Alexis Fallon, filed the complaint for recovery of withheld tax rebates, interest and mandatory injunction.
The plaintiffs want the court to order the government to stop expending funds set aside in the special rebate trust account, to declare that the government is obligated to pay interest, and to establish a procedure and schedule for a remedy to be made.
The plaintiffs are also seeking pre- and post-judgment interest, attorney’s fees, costs of suit, and any such other relief the court deems just and equitable.
The complaint stated that the plaintiffs brought this action on behalf of themselves “and all others similarly situated who paid income taxes in the commonwealth and are due a rebate and who have been denied payment of statutory rebates, accrued interest and/or a meaningful offset against present and future tax liabilities.”
According to the complaint, the CNMI government has knowingly and deliberately frustrated the lawful offset of rebate claims.
It cited a Deloitte & Touche auditor’s report stating that the CNMI government has failed to calculate and pay statutory interest due and owing on accrued rebate claims.
The complaint stated that these practices “unlawfully discriminate against local wage earners, business owners and other taxpayers the vast majority of whom cannot afford to pursue their rebate claims individually.”
The plaintiffs want appropriate remedies for these violations of federal and CNMI laws.