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 VII
Record Keeping and Information Collection
[FOR REFEREENCE ONLY]
SECTIONS
§ 842. Accounts and records.
§ 843. Power to enter and search.
§ 844. Administrative summons.
§ 845. Audit of taxpayer’s tax affairs.
§ 846. Issue of Taxpayer Identification Numbers.
§ 847. Cancellation of Taxpayer Identification Number.
§ 848. Quotation of Taxpayer Identification Number.
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 38 of PL 17-50 added a subchapter VII of chapter 8 entitled Record Keeping and Information Collection.
(1) Every taxpayer must, for the purposes of a revenue law, maintain in the FSM such accounts, documents, and records (including in electronic form) as may be required under the revenue law and such accounts, documents, and records must be retained by the taxpayer for six years after the end of the tax period to which they relate.
(2) If any accounts, documents, or records referred to in subsection (1) of this section are not in English, the CEO may, by notice in writing, require the person keeping the accounts, documents, or records to provide, at the person’s expense, a translation into English by a translator approved by the CEO.
Source: PL 17-50 § 39.
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 861 to 842 to allow all of the sections in this chapter to have eight hundred section numbers.
(1) For the purposes of administering a revenue law, the CEO or a revenue officer authorized by the CEO, in writing, for the purposes of this section:
(a) must have, upon presentation of a warrant issued by a court of competent jurisdiction, full and free access to any premises, place, property, book, record, or data storage device;
(b) may, upon presentation of a warrant issued by a court of competent jurisdiction, make an extract or copy of any accounts, documents, books, or records (including in electronic form) to which access is obtained under paragraph (a) of this subsection;
(c) may, upon presentation of a warrant issued by a court of competent jurisdiction, seize any accounts, documents, books, or records that, in the opinion of the CEO or authorized officer, afford evidence that may be material in determining the tax liability of a taxpayer;
(d) may retain any accounts, documents, books, or records seized under paragraph (c) of this subsection for as long as they may be required for determining a taxpayer’s tax liability or for any proceeding under a revenue law; and
(e) may, if a hard copy or copy on data storage media of information stored on a data storage device is not provided, seize and retain the device for as long as is necessary to copy the information required.
(2) A revenue officer is not entitled to enter or remain on any premises or place if, upon request by the owner or lawful occupier, the officer is unable to produce the CEO’s written authorization permitting the officer to exercise powers under subsection (1) of this section.
(3) The CEO or authorized officer may require a police officer to be present for the purposes of exercising powers under this section.
(4) Upon presentation by the CEO or authorized officer of a warrant issued by a court of competent jurisdiction, the owner or lawful occupier of the premises or place to which an exercise of power under subsection (1) of this section relates must provide all reasonable facilities and assistance to the CEO or authorized officer.
(5) A person whose accounts, documents, books, or records have been seized under subsection (1) of this section may examine them and make copies, at the person’s expense, during office hours.
(6) A person whose data storage device has been seized under subsection (1) of this section may have access to the device during office hours on such terms and conditions as the CEO or authorized officer may specify.
(7) The CEO or authorized officer must sign for all accounts, documents, books, records, or data storage devices removed and retained under this section and return them to the owner within 14 days of the conclusion of the investigation to which they relate and all related proceedings.
(8) This section has effect notwithstanding:
(a) any law relating to privilege or the public interest with respect to the giving of information or the production of any property, accounts, documents, books, or records (including in electronic form); or
(b) any contractual duty of confidentiality.
Source: PL 17-50 § 40.
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 862 to 843 to allow all of the sections in this chapter to have eight hundred section numbers.
(1) The CEO may, for the purposes of administering any revenue law, by notice in writing, require any person:
(a) to furnish such information as the CEO may require;
(b) to attend and give evidence concerning that person’s or any other person’s tax affairs; or
(c) to produce all accounts, books, documents, and records (including in electronic form) in the person’s custody or under the person’s control relating to that person’s or any other person’s tax affairs.
(2) If a notice served under subsection (1) of this section requires the production of accounts, books, documents, or records (including in electronic form), it is sufficient if such accounts, books, documents, or records are described in the notice with reasonable certainty.
(3) A notice issued under this section must be served personally upon the person to whom it is directed or left at the person’s last known usual place of business or abode and the certificate of service signed by the person serving the notice is conclusive evidence of the facts stated therein.
(4) The CEO may require the information or evidence referred to in subsection (1) of this section to be given under oath, verbally or in writing, and, for that purpose, the CEO may administer the oath.
(5) This section has effect notwithstanding:
(a) any law relating to privilege or the public interest with respect to the giving of information or the production of any property, accounts, documents, books, or records (including in electronic form); or
(b) any contractual duty of confidentiality.
Source: PL 17-50 § 41.
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 863 to 844 to allow all of the sections in this chapter to have eight hundred section numbers.
(1) The CEO may select any taxpayer for an audit of the taxpayer’s tax affairs for the purpose of a revenue law having regard to:
(a) the taxpayer’s history of compliance or non-compliance with the revenue law or any other revenue law;
(b) the amount of tax payable by the taxpayer;
(c) the class of business conducted by the taxpayer; or
(d) any other matter that the CEO considers relevant to ensuring the collection of tax due.
(2) The fact that a taxpayer has been audited in relation to a tax period does not preclude the taxpayer from being audited again in the relation to the next and following tax periods if there are reasonable grounds for the audits, particularly having regard to the matters referred to in subsection (1) of this section.
(3) An audit of a taxpayer’s tax affairs may be conducted for the purposes of more than one revenue law.
Source: PL 17-50 § 42.
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 864 to 845 to allow all of the sections in this chapter to have eight hundred section numbers.
(1) The CEO may, for the purposes of identification and cross-checking, require a taxpayer to apply for a Taxpayer Identification Number.
(2) An application for a Taxpayer Identification Number must be:
(a) in the prescribed form;
(b) accompanied by documentary evidence of the person’s identity as prescribed; and
(c) lodged in the prescribed manner.
(3) If a person has applied for a Taxpayer Identification Number under subsection (1) of this section and the CEO is satisfied that the applicant’s identity has been established, the CEO must issue a Taxpayer Identification Number to the applicant by written notice.
(4) The CEO must refuse an application under this section:
(a) if the CEO is not satisfied as to the applicant’s true identity;
(b) if the applicant has already been issued with a Taxpayer Identification Number that is still in force; or
(c) for any other reason the CEO considers appropriate.
(5) The CEO must serve the applicant with written notice of the decision to refuse an application under this section within 14 days after making the decision.
(6) The CEO may, without an application being made, issue a Taxpayer Identification Number to any person liable for tax under a revenue law.
Source: PL 17-50 § 43.
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 865 to 846 to allow all of the sections in this chapter to have eight hundred section numbers.
(1) A person who ceases to be a taxpayer must apply to the CEO, in the prescribed form, for cancellation of the person’s Taxpayer Identification Number within 30 days of the date on which the person ceased to be a taxpayer.
(2) The CEO must, by notice in writing, cancel a Taxpayer Identification Number:
(a) if the person has ceased to be a taxpayer;
(b) if a Taxpayer Identification Number has been issued to the person under an identity that is not the person’s true identity;
(c) if the person has already been issued with a Taxpayer Identification Number that is still in force; or
(d) for any other reason the CEO considers appropriate.
(3) The CEO may, at any time, by notice in writing, cancel the Taxpayer Identification Number issued to a person and issue the person with a new Taxpayer Identification Number.
Source: PL 17-50 § 44.
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 866 to 847 to allow all of the sections in this chapter to have eight hundred section numbers.
The CEO may require a taxpayer to state the taxpayer’s Taxpayer Identification Number in any tax return, notice, or other document used for the purposes of any revenue law.
Source: PL 17-50 § 45.
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 867 to 848 to allow all of the sections in this chapter to have eight hundred section numbers.