Guam News - Guam News

Guam - The plaintiff's in a lawsuit filed last year over GovGuam's failure to pay tax refunds in a timely manner, are now asking the District Court for "Summary Judgement" seeking a permanent injunction to compel GovGuam to reform its administration of tax refunds. 

The original case was filed in April 2011. GovGuam moved to dismiss it last August, but following a hearing in January  of this year, the Court issued an Order granting Class Action status and allowing the suit to move forward.

Summary Judgement is a decision from the Judge granted when there is no genuine dispute over the material facts in a lawsuit. The motion filed Monday argues that GovGuam does not dispute that for years they have failed to provide tax refunds in a timely manner, leaving island residents waiting years before getting their tax refunds.

READ the Motion for Summary Judgement HERE   

Monday's motion for Summary Judgement was filed in District Court by Attorney Ignacio Aguigui of Lujan, Aguigui and Perez.

Aguigui notes that GovGuam borrowed money to reduce its tax liability in December 2011 and again in June 2012, but GovGuam "still owes $30 million in refunds, and will owe over $100 million next year, with no money set aside to pay the mounting debt." And he argues that GovGuam has ignored laws that require that reserves be set aside so that funds are available to pay the refunds.

The motion is also critical of  Rev and Tax's policy for expediting refunds calling it  "arbitrary" and "ripe with favoritism." And it accuses the Department of Revenue and Tax of expediting "refunds to the named plaintiffs in an attempt to moot the case, even though the named plaintiffs never requested expedited refunds." 

Aguigui argues that all of these "essential facts" are "undisputed," and as a result "this matter can be decided as a matter of law."

The Motion asks for the Court to:

* declare that GovGuam has violated the Organic Act and the Equal Protection Clause of the 14th Amendment

* order GovGuam to set aside revenues on an ongoing basis to pay income tax refunds

* issue a permanent injunction that compels defendants to fundamentally reform their administration of the tax refunds

The case is set for a hearing on August 21.

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