“TAX fraud is theft and will not be tolerated,” according to Department of Finance Secretary Tracy B. Norita in a statement Tuesday.
She said tax collection and enforcement are top priorities of the CNMI government.
“Currently, the Department of Finance and the Division of Revenue and Taxation are working closely with the Office of the Attorney General to identify and pursue tax crimes, including tax evasion and tax fraud,” she added.
Norita said “tax fraud is a deliberate attempt to evade taxes or to defraud DRT.”
She said tax fraud takes place when a person or company willfully does one of the following:
• Intentionally fails to pay taxes owed
• Willfully fails to file a federal income tax return
• Fails to report all income
• Makes false or fraudulent claims
Babauta said employers, for their part, have a legal obligation to collect and pay over taxes withheld from employee wages to DRT.
“Any person who willfully fails to comply with these obligations can be held criminally liable. The law also provides for a civil penalty equal to the total amount of the tax not collected and paid over. This penalty can be imposed on any responsible person, which could include an officer of a corporation, a partner, a sole proprietor, or an employee,” Babauta said.
She added that “employers who fail to collect and remit employment taxes due are stealing from their employees and the government. Those who are responsible for deducting taxes from employees’ wages and intentionally using these funds for other purposes will be prosecuted to the fullest extent of the law.”
Tax fraud hurts the whole community and must be stopped, Babauta said.
Anyone with information regarding potential tax fraud or other tax crimes may contact:
The Division of Revenue & Taxation – (670) 664-1040
The Office of the Public Auditor – (670) 235-3937
The Office of the Attorney General – (670) 237-7500
