Editor’s note: This version of chapter 8 of this title is included here for reference only, as at the time of this codification the provisions of section 87, that set forth codified section 934 of PL 17-50, as amended by section 1 of PL 17-83, made this Act null and void.
Section 1 of PL 17-83 states:
Section 1. Section 934 of title 54 of the Code of the Federated States of Micronesia, as enacted by Public Law No. 17-50, is hereby amended to read as follows:
§ 934. If any of the four states of the Federated States of Micronesia have not passed into law value added tax legislation as of midnight July 19, 2013, this act is null and void.
PL 17-83 was signed into law by Vice President Alik L. Alik on April 19, 2013.
SUBCHAPTER IV
Objections and Appeals
[FOR REFEREENCE ONLY]
SECTIONS
§ 819. Objection to tax decision.
§ 820. Judicial review.
§ 821. General provisions relating to objections and appeals.
Editor’s note: This version of chapter 8 of this title is included here for reference only, as at the time of this codification the provisions of section 87, that set forth codified section 934 of PL 17-50, as amended by section 1 of PL 17-83, made this Act null and void.
Section 1 of PL 17-83 states:
Section 1. Section 934 of title 54 of the Code of the Federated States of Micronesia, as enacted by Public Law No. 17-50, is hereby amended to read as follows:
§ 934. If any of the four states of the Federated States of Micronesia have not passed into law value added tax legislation as of midnight July 19, 2013, this act is null and void.
Section 18 of PL 17-50 added a subchapter IV of chapter 8 entitled Objections and Appeals.
(1) A person dissatisfied with a tax decision must lodge an objection to the decision with the CEO within 30 days of service of the notice of the decision.
(2) If the CEO has amended an assessment under section 813 of this title, the taxpayer has no further right of objection that the taxpayer would have had if the amendment had not been made, except to the extent that by reason of the amendment a fresh liability is imposed on the taxpayer or an existing liability is increased.
(3) An objection must substantially comply with the prescribed form and state fully and in detail the grounds upon which the person objecting relies to support the objection.
(4) A person may apply, in writing, to the CEO for an extension of time to lodge an objection and the CEO may, if satisfied there is reasonable cause, grant an application under this section and must serve notice of the decision on the applicant as soon as is practicable after making the decision.
(5) Subject to subsection (6) of this section, the CEO must consider the objection and either allow the objection in whole or part, or disallow it, and the CEO’s decision is referred to as an “objection decision”.
(6) The CEO is not required to consider an objection unless and until the person objecting has complied with all the requirements under this chapter or the revenue law to which the objection relates in relation to the making of tax returns and payment of tax.
(7) The CEO must serve notice of the objection decision on the person objecting as soon as practicable after making the decision.
Source: PL 17-50 § 19.
Editor’s note: The sections of this chapter were numbered such that all of the sections were not numbered in the eight hundreds, but were also numbered in the nine hundreds. This created a problem because some of the nine hundred section numbers were already designated by chapter 9 of this title. This section was therefore renumbered from 831 to 819 to allow all of the sections in this chapter to have eight hundred section numbers.
(1) A person dissatisfied with an objection decision may institute an action for review in a court of competent jurisdiction in the FSM. Such action is commenced by filing a petition, within 60 days after service of notice of the objection decision, setting forth:
(a) assignments of errors alleged to have been committed by the CEO in making the objection decision;
(b) the facts relied upon to sustain such assignments of errors; and
(c) a prayer for appropriate relief.
(2) The CEO is the defendant in proceedings under subsection (1) of this section.
(3) The payment of the amount of tax in dispute, in whole or part, after the filing of a petition under subsection (1) of this section does not deprive the court of jurisdiction.
(4) When the decision of the court or an appeal there from becomes final, the CEO must, upon presentment of a certified copy of the decree, make such adjustments to comply with the decree as are necessary to correct, amend, or abate the assessment, and determine whether an
additional amount of tax is to be assessed.
(5) This section shall not condition or limit the right of a taxpayer to seek immediate judicial review of any action taken or to be taken under subchapter VI of this chapter.
Source: PL 17-50 § 20.
Cross-reference: The statutory provisions on the FSM Supreme Court and the Judiciary are found in title 4 of this code.
Editor’s note: The sections of this chapter were numbered such that all of the sections were not numbered in the eight hundreds, but were also numbered in the nine hundreds. This created a problem because some of the nine hundred section numbers were already designated by chapter 9 of this title. This section was therefore renumbered from 832 to 820 to allow all of the sections in this chapter to have eight hundred section numbers.
(a) in the case of a tax assessment, the burden is on the taxpayer to prove that the assessment is excessive; or
(b) in the case of a tax decision (other than a tax assessment), the burden is on the person objecting to the decision to prove that the decision should not have been made or should have been made differently.
(2) In an action for review by a court under section 820 of this title, the person bringing the action is limited to the grounds stated in the person’s objection to the CEO.
(3) To the extent necessary for the making of a decision and when presented, the reviewing court shall decide all relevant questions of law and fact, interpret constitutional and statutory provisions, and determine the meaning or applicability of the terms of any action taken by the CEO.
(4) The reviewing court shall:
(a) compel any action of the CEO unlawfully withheld or unreasonably delayed; and
(b) hold unlawful and set aside any actions and decisions of the CEO found to be:
(i) arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law;
(ii) contrary to constitutional right, power, privilege, or immunity;
(iii) in excess of statutory jurisdiction, authority, or limitations, or a denial of legal rights;
(iv) without substantial compliance with the procedures required by law; or
(v) unwarranted by the facts.
(5) Subject to subsection (6) of this section, the tax due under a tax assessment is payable notwithstanding that an objection has been lodged or an action for judicial review under section 820 of this title has been instituted by the taxpayer in respect of the assessment.
(6) The CEO may, upon application in writing by a taxpayer, agree to stay recovery of a tax in dispute under a tax assessment up to a maximum of fifty percent (50%) of the disputed tax, but only if the taxpayer has paid the entire amount of tax due under the assessment that is not in dispute.
Source: PL 17-50 § 21.
Cross-reference: The statutory provisions on the FSM Supreme Court and the Judiciary are found in title 4 of this code.
Editor’s note: The sections of this chapter were numbered such that all of the sections were not numbered in the eight hundreds, but were also numbered in the nine hundreds. This created a problem because some of the nine hundred section numbers were already designated by chapter 9 of this title. This section was therefore renumbered from 833 to 821 to allow all of the sections in this chapter to have eight hundred section numbers.