FSMC, TITLE 54.  TAXATION AND CUSTOMS

CHAPTER 7
FSM Unified Revenue Authority

Editor’s notes: Section 1 of PL 16-75 added a new chapter 7 of this title entitled FSM Unified Revenue Authority. PL 16-75 was signed into law by Vice President Alik L. Alik, in his capacity as Acting President, on April 19, 2011.

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SUBCHAPTER III
Service of Authority

SECTIONS

§ 731. Appointment of Chief Executive Officer.
§ 732. Appointment of officers and their staff.
§ 733. Delegation of CEO’s functions and powers.
§ 734. Oath of office.
§ 735. Confidentiality and disclosure of information.

Editor’s note: Section 17 of PL 16-75 added a new subchapter III of this chapter 7 entitled Service of Authority.

§ 731. Appointment of Chief Executive Officer.

(1) The Board shall appoint a Chief Executive Officer (CEO) on such terms and conditions as the Board may determine.

(2) The CEO:

(a) shall serve for a term of four years, subject to reappointment by the Board;

(b) is responsible for the administration and enforcement of, and collection of revenue, under the revenue laws;

(c) is responsible for the day-to-day operations of the Authority;

(d) is responsible for the proper administration and management of the functions and affairs of the Authority in accordance with the policy laid down by the Board; and

(e) shall perform such other functions and duties as the Board may determine.

(3) Except as provided in subsection (2) of this section, the CEO is not subject to the direction or control of any person.

(4) If the CEO is temporarily absent from the FSM, or temporarily unable to perform the duties of his office, the Board may appoint a person to act in the place of the CEO during that period.

(5) The Board may terminate the appointment of the CEO for incapacity, misbehavior, or misfeasance or malfeasance. A CEO whose appointment has been terminated under this subsection may appeal to a court of competent jurisdiction.

Source: PL 16-75 § 18.

§ 732. Appointment of officers and other staff.

The CEO may appoint, on such terms and conditions as the Board may determine, such officers, employees, agents, or consultants as may be necessary or expedient for carrying out the functions and duties of the Authority.

Source: PL 16-75 § 19.

§ 733. Delegation of CEO’s functions and powers.

(1) Subject to subsection (4) of this section, the CEO may, by written instrument, delegate to a revenue officer any of his or her functions and powers under any revenue law, other than this power of delegation.

(2) A reference in a revenue law to the CEO includes, in respect of the exercise of a power or performance of a function delegated to a revenue officer, a reference to the delegate.

(3) A delegation under this section is revocable at will and does not prevent the exercise of a power or performance of a function by the CEO.

(4) The CEO shall not delegate the functions and powers of tax assessment and collection to any person other than an employee of the Authority; PROVIDED, HOWEVER, that nothing herein shall be deemed as limiting the CEO from retaining legal counsel, or contracting with consultants and others as may be necessary to assist the Authority to perform its duties.

Source: PL 16-75 § 20.

§ 734. Oath of office.

The Board may prescribe an oath of office to be administered to revenue officers.

Source: PL 16-75 § 21.

§ 735. Confidentiality and disclosure of information.

(1) Revenue officers, directors, employees of the Authority, former directors of the Board, former members of a committee of the Board, persons invited to a Board or committee meeting, former employees or contractors of the Authority, and any person formerly or presently engaged by the Authority in any capacity shall not disclose any business or personal document or information received during the performance of duties or in the course of any meeting of the Authority if such document or information is deemed confidential or secret by law or by generally accepted business practices, except that they may disclose a confidential or secret business or personal document or information to the following:

(a) another revenue officer, but only to the extent required by law or as may be necessary for the purposes of any revenue law;

(b) the Secretary, but only in relation to National taxes;

(c) a Finance Official of a State, but only in relation to that State’s taxes;

(d) the Secretary of the FSM Department of Justice or his designee, but only to the extent required for any legal action or claim by or against the National Government;

(e) the Attorney General of a State Government or his designee, but only to the extent required for any legal action or claim by or against that State;

(f) a court of competent jurisdiction upon order of such court, or to the extent necessary with respect to the enforcement of any revenue law;

(g) the National Public Auditor or a person authorized by the National Public Auditor in writing, but only to the extent that the disclosure is necessary for the performance of the audit of the Authority’s accounts;

(h) a State Public Auditor or a person authorized by a State Public Auditor in writing, but only to the extent that the disclosure is necessary for audit of accounts held by the Authority on behalf of that State;

(i) the competent authority of a government of a foreign country with which the FSM National Government has entered into an agreement providing for the exchange of information, but only to the extent permitted under that agreement and applicable law; and

(j) a person with the written consent of the person to whom the documents or information relate.

(2) If a revenue officer is permitted to disclose documents or information under subsection (1) of this section, the officer must maintain secrecy and confidentiality except to the minimum extent necessary to achieve the object for which the disclosure is permitted.

(3) Any person who knowingly or intentionally violates any provision of subsections (1) or (2) of this section, or a duty or obligation imposed therein, shall be guilty of a felony and, upon conviction thereof, shall be fined not less than $500 and not more than $5,000, or be imprisoned for not more than two years, or both.

Source: PL 16-75 § 22.

Cross-reference: The statutory provisions on the President and the Executive are found in title 2 of this code.