A follow-up story published by Kaniva news on Tuesday saying royalty, nobles and top government figures were among people named on a list of TOP$11 million irrecoverable tax has concerned the Prime Minister.
The
revelation that the list of names of those with unpaid businesses and personal
tax debts had been leaked to us has also concerned some top government
officials.
We said on Tuesday that Kele’a newspaper had published part of the list of names of those people with irrecoverable unpaid tax debts. Kaniva also received a copy of the list.
Kaniva did not publish the names on the list.
However, we said the list included a late queen, princes, some members of the nobility, some top government figures and local businesses.
Prime
Minister Pohiva Tu’i’onetoa wrote to us this morning and said the list had to
go through a “verification” process by the Auditor General who needed to talk
to people with overdue tax debts.
He said
these people needed to give their side of the story to the Auditor General.
Hon
Tu’i’onetoa said there were a number of things to do before any names with
amounts of unpaid tax debts could be listed as irrecoverable.
He
previously said in a statement the leaked list has not followed this process.
The Prime
Minister claimed the “nobles” did not ask to write off their debts.
He has accused
the former Minister of Revenue and Customs Mateni Tapueluelu for failing to
follow the proper legal process to write off the debts.
Hon Tu’i’onetoa wanted to know the names of those legal consultants from whom MP Tapueluelu said he sought advice before submitting the list to Cabinet to write off the debts.
As we reported this week, MP Tapueluelu told TBC he submitted the list to Cabinet after his Ministry sought advice from the Ministry of Justice and an International Monetary Fund consultant.
Top government officials concerns
Meanwhile,
some top government officials and public figures have written to us asking not
to publish their names.
They echoed
the same concerns with which the Prime Minister has raised.
One of them said he heard that his name was on the leaked list, but he had yet to receive a tax notice from the Ministry of Revenue on that alleged debt.
He also sent
to us two copies of letters from the Ministry of Revenue.
One was a
notice of assessment dated on September 2016 with an amount he owed to the
Ministry.
The other
was a copy of a receipt which appeared to show the money he owed had been paid
in June 2019.
The leaked
list has been shared on social media this week and caused public concerns and
clashes between the PTOA (Democrats) supporters and royal advocates.
It came
after reports by some local media outlets and Facebook groups accusing the
former PTOA government of proposing the write-off as a way of cancelling debts
belonged to businesses owned by families of the former Deputy and Acting Prime
Minister Semisi Sika and former Minister of Trade and Economic Development Dr
Tu’i Uata.
MP
Tapueluelu has denied this and said he was told by the Ministry’s staff,
including the CEO, that the Ministry routinely wrote off debts that had not
been recovered within five years.
As we have reported
several times in the past month, Tu’i’onetoa said that on July 12 this year the
late ‘Akilisi Pohiva’s Cabinet agreed to a proposal from the Minister of
Revenue and Customs to write off debts of unpaid tax and duties due to the
Ministry for the period of 2004-2014.
He said the
former Minister for Finance, Pohiva Tu’i’onetoa, was not present at the Cabinet
meeting when the submission was made and that he later advised Cabinet that the
proper legal process to write off debts had not been followed.
According to
Section 41 of the Public Finance Management Act, proposals to write off debts have
to be submitted to the Secretary for Finance and the Minister for Finance for
investigation.
Once that
investigation is completed, only the Minister for Finance and no one else
recommends to Cabinet whether or not to write off the debt.
When a
submission to write off debts is received by the Ministry of Finance, it is
usually referred to the Auditor General’s Office to verify why the debts cannot
be collected by the reporting agencies.
The Auditor
General then reports back to the Minister of Finance who reports to Cabinet as
to whether the debt is to be written off or not.
On July 17
the late ‘Akilisi’s Cabinet decided to go back on its decision.
A government
spokesman said no debts had been written off and the Ministry of Finance had
not received any submission from the Ministry of Revenue and Customs.