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 II
Establishment, Membership, and
Meetings of the Authority

SECTIONS

§ 711. Establishment of the FSM Unified Revenue Authority.
§ 712. Board of Directors of the Authority.
§ 713. Appointment and termination of directors.
§ 714. Chairperson of the Board.
§ 715. Meetings of the Board.
§ 716. Transaction of business without meeting.
§ 717. Remuneration of directors.
§ 718. Disclosure of interest.
§ 719. Minutes of meetings and business transacted.
§ 720. Common seal.
§ 721. Task assignment by Board.

Editor’s note: Section 5 of PL 16-75 added a new subchapter II of this chapter 7 entitled Establishment, Membership, and Meetings of the Authority.

§ 711. Establishment of the FSM Unified Revenue Authority.

The Federated States of Micronesia Unified Revenue Authority is hereby established under the laws of the Federated States of Micronesia. It may hereinafter be referred to as “the Authority”.

Source: PL 16-75 § 6.

§ 712. Board of Directors of the Authority.

(1) There is a Board of Directors of the Authority that is the governing body of the Authority.

(2) The Board is responsible for monitoring the overall performance of the Authority and for determining policies relating to staffing of and procurement by the Authority.

(3) The Board must not intervene in the determination of an assessment, ruling application, liability, objection, or appeal of a person under a revenue law, or in any other operational matter of the Authority.

Source: PL 16-75 § 7.

§ 713. Appointment and termination of directors.

(1) The Board consists of the following directors:

(a) the Secretary;

(b) a representative of the State of Chuuk appointed pursuant to Chuuk State law;

(c) a representative of the State of Kosrae appointed pursuant to Kosrae State law;

(d) a representative of the State of Pohnpei appointed pursuant to Pohnpei State law;

(e) a representative of the State of Yap appointed pursuant to Yap State law; and

(f) a representative of the private sector appointed by a majority of the directors referred to in paragraphs (a) through (e) of this section.

(2) The person appointed under subsection (1)(f) of this section must be from a pool of candidates from the private sector nominated by the Governors, who in the opinion of the Board, has adequate experience in public administration, or in financial, commercial, tax, or legal matters. Each Governor may nominate no more than two persons from his State.

(3) The following persons are not allowed to be appointed under subsection (1)(f) of this section:

(a) a person who is an undischarged bankrupt;

(b) a person who has been convicted of an offense under a revenue law, or who otherwise has been convicted of any other crime involving moral turpitude;

(c) a person whose affairs under all revenue laws are not up to date; or

(d) a person who is disqualified or suspended from practice of the person’s profession for misconduct.

(4) Before appointing a person under subsection (1)(f) of this section, the Board must take into consideration any potential conflicts of interest that the person may have.

(5) The person appointed as director under subsection (1)(a) of this section shall hold the office for as long as the person holds the office of Secretary.

(6) A person appointed as director under subsection (1)(b), (c), (d), or (e) of this section shall hold office pursuant to the respective State law under which each was appointed.

(7) The person appointed as director under subsection (1)(f) of this section shall hold office for a term not exceeding three years and is eligible for reappointment.

(8) A person appointed as a director under subsection (1)(b), (c), (d), or (e) of this section may be removed from office in accordance with the State law of appointment.

(9) The person appointed as director under subsection (1)(f) of this section may be removed from office by resolution of the Board if the director:

(a) has been absent, without leave of the Board, from three consecutive meetings of the Board;

(b) has become an undischarged bankrupt;

(c) has been convicted of an offense, or has become liable for a penalty, under a revenue law, including section 718 of this chapter, or has been convicted of any other crime involving moral turpitude; or

(d) has become disqualified or suspended from practice of the person’s profession for misconduct.

Source: PL 16-75 § 8.

§ 714. Chairperson of the Board.

(1) The Chairperson of the Board shall rotate annually among the five FSM governments as determined by the Board.

(2) The Chairperson may authorize, in writing, any director to exercise any power or perform any function conferred on the Chairperson by or under this chapter.

Source: PL 16-75 § 9.

§ 715. Meetings of the Board.

(1) The Board must meet as often as may be necessary for the performance of its functions; PROVIDED HOWEVER that it shall meet on no less than four occasions each calendar year; and PROVIDED, FURTHER, that at least two such meetings shall require the physical presence of the directors at a single location.

(2) At any meeting, the quorum of the Board shall be four directors. Subject to subsection (1) of this section, participation may be in person, by teleconference, or by other appropriate electronic means in real time. A quorum, once established, shall not be broken by the absence or withdrawal of one or more directors before a meeting is adjourned.

(3) Notice of a meeting of the Board must be given to each director and shall be delivered by hand or sent by post, facsimile, electronic mail, or other written message to an address supplied by the director to the Board for this purpose.

(4) Subject to subsection (5) of this section, decisions at meetings of the Board are by a simple majority of the directors participating.

(5) The director appointed under section 713(1)(f) of this section shall be a non-voting member of the Board but is to be taken into account in determining whether a quorum exists.

(6) Subject to this section, the Board may regulate its own procedure.

(7) The validity of a proceeding of the Board is not affected by a vacancy in the membership, or by any defect in the appointment of a director.

(8) The Board may invite a person to attend a meeting of the Board for the purpose of advising it on any matter under discussion, but the person so attending shall have no right to vote at the meeting.

Source: PL 16-75 § 10.

§ 716. Transaction of business without meeting.

(1) A resolution of the Board is valid, even though it was not passed at a meeting of the Board, if:

(a) it is signed or assented to by all five directors of the Board who are appointed under section 713(1)(a),(b),(c),(d), and (e) of this chapter; and

(b) a notice in writing of the proposed resolution was given to each director.

(2) [RESERVED]

Source: PL 16-75 § 11.

§ 717. Remuneration of directors.

The directors of the Board and persons invited to attend a meeting of the Board under section 715(8) of this chapter are entitled to such remuneration as may be established by regulation.

Source: PL 16-75 § 12.

§ 718. Disclosure of interest.

(1) A director of the Board who has a direct or indirect personal interest in the outcome of any matter before the Board must disclose the interest to the Board.

(2) The disclosure of an interest under subsection (1) of this section must be recorded in the minutes of the Board.

(3) After making a disclosure under subsection (1) of this section, the director:

(a) in the case of a meeting, must withdraw from the meeting before the commencement of deliberations of the Board in respect of the matter referred to in subsection (1) of this section, although the director may be counted for the purposes of forming a quorum of the Board at the meeting; and

(b) in any case, must not vote on the matter.

(4) A director who contravenes this section is guilty of an offense, and upon conviction is subject to a fine not exceeding $1000, imprisonment for not more than one year, or both.

Source: PL 16-75 § 13.

§ 719. Minutes of meetings and business transacted.

(1) The Board must keep minutes of all its meetings and business transacted under sections 715 and 716 of this chapter in a proper form.

(2) The minutes of a meeting, if duly signed by the Chairperson or person presiding, are admissible, in any legal proceedings, as evidence of the facts stated therein and a meeting of the Board in respect of which minutes have been so signed is treated as having been duly convened and held, and the directors present at the meeting have been duly appointed to act.

(3) Any minutes of a resolution dealt with under section 716 of this chapter, if duly signed by the Chairperson, are admissible, in any legal proceedings, as evidence of the facts stated therein and that the resolution was properly dealt with in accordance with section 716 of this chapter.

Source: PL 16-75 § 14.

§ 720. Common seal.

(1) The Authority must have a common seal of such design as it may decide.

(2) The common seal must be kept by the Chairperson and its affixing must be authenticated by two directors of the Board generally or specifically authorized by the Authority for the purpose, or by one such director and the Chairperson.

(3) All deeds, documents, and other instruments purporting to be sealed with the common seal and authenticated in accordance with subsection (2) of this section are, unless the contrary is proved, presumed to have been validly executed.

(4) The common seal of the Authority must be officially and judicially noticed for all purposes.

Source: PL 16-75 § 15.

§ 721. Task assignment by Board.

(1) The Board may, from time to time, by notice in writing under the hand of the Chairperson, assign to any person or committee a specific task to assist the Board in furtherance of its duties; PROVIDED, HOWEVER, that the Board may not delegate its policy-making power.

(2) An assignment under this section may be made to a specified person or committee, or holder for the time being of a specified office or to the holders of offices of a specified class.

(3) An assignment may be made subject to such restrictions and conditions as the Board thinks fit, and may be made either generally or in relation to any particular case or class of case.

(4) A person or committee purporting to be acting under assignment of the Board must, when required to do so, produce satisfactory evidence of such assignment.

(5) A committee established under this section may regulate its own procedure but is subject to direction given by the Board.

(6) Sections 715, 716, 718, and 719 of this chapter apply equally to members and meetings of a committee established under this section.

(7) The members of a committee and persons invited to attend meetings of the committee to advise the committee are entitled to such allowances and expenses as the Board may fix by regulation.

Source: PL 16-75 § 16.