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.
§ 761. Limitation of liability.
§ 762. Authority as agent of the Government.
§ 763. Claims for and payments of tax refunds.
§ 764. Proceedings conducted by revenue officers.
§ 765. Vesting of assets and liabilities, contracts and proceedings; transitional provisions.
§ 766. References in other laws.
§ 767. Controlling laws.
§ 768. Regulations.
§ 769. Commencement of Administration.
Editor’s note: Section 36 of PL 16-75 added a new subchapter VI of this chapter 7 entitled Miscellaneous.
(1) Except as provided in subsection (3) of this section, no civil proceedings shall lie against the Authority or an officer, employee, or director of the Authority for anything done or said, or a failure to do or say anything in the course of the operation of the Authority, unless it is shown that the Authority, director, officer, or employee acted in bad faith or with intentional disregard for the rights or safety of others, or unless it is shown that such action or failure to act constitutes a violation of a revenue law.
(2) Unless waived, no action for damages shall lie against the FSM National Government or a Government of the several States for any act or omission on the part of the Authority, or any of its directors, revenue officers or of its CEO.
(3) Nothing in this section shall be construed as a limitation on the power of the Authority to sue and be sued in its own name.
(1) In exercising its powers and duties under the revenue laws, no action, claim, suit or statement made by the Authority in its own name shall affect its status as agent of the FSM National Government and the Governments of the several States for the purpose of tax collection and revenue administration, and all actions, statements or communications undertaken by the Authority as agent are effective as if made by the Authority in its own name, and vice-versa.
(2) To the extent necessary for enforcement, any tax claims administered by the Authority as agent of the FSM National Government or the Governments of the several States are deemed assigned to the Authority for the purpose of collection and administration.
Source: PL 16-75 § 38.
Cross-reference: The statutory provisions on the President and the Executive are found in title 2 of this code. The statutory provisions on the FSM Congress are found in title 3 of this code.
All claims for refunds or offsets made by any person with respect to any sum collected by the Authority on behalf of the FSM National Government or the Governments of the several States shall constitute, first, a claim against those funds held within the trust accounts maintained by the Authority pursuant to section 753(2) of this chapter that are allocated or allocable to the government or governments for whose benefit the original tax was collected, and second, against the Government itself or the Governments themselves, as the case may be.
Subject to section 767 of this chapter, a properly qualified revenue officer authorized in writing by the CEO may appear in civil proceedings in a court of competent jurisdiction on behalf of such Government for the recovery of any unpaid tax under the respective revenue law.
Source: PL 16-75 § 40.
Cross-reference: The statutory provisions on the FSM Supreme Court and the Judiciary are found in title 4 of this code.
(1) All property, except real property or such property as the CEO may determine, that immediately before the commencement of this chapter was vested in the FSM National Government for the use of the CTA for the purpose of giving effect to the taxes and duties imposed under title 54 of this code is, on the date of commencement of this chapter, and without further assurance, vested in the Authority subject to all interests, liabilities, charges, obligations and trusts affecting the property.
(2) Except as otherwise provided in subsection (1) of this section in relation to property, all contracts, debts, engagements and liabilities of the FSM National Government attributable to the CTA remain vested in the FSM National Government and may be enforced by or against the FSM National Government.
(3) All legal proceedings and claims in respect of taxes and duties imposed under title 54 of this code pending at the commencement of this chapter are to be continued or enforced by or against the Authority in the same manner as they would have been continued or enforced if this chapter had not been enacted.
(4) The Authority will offer contracts of employment to all existing revenue authority employees in good standing provided that the Authority is not required to hire the employees at the same salaries or to fill the same positions. In the event employees of a pre-existing revenue authority are employed by the Authority, all accrued benefits, sick leave, annual leave and other contractual obligations owed by the pre-existing revenue authority to its employees remain the obligation of that authority and are not assumed by the Authority, except to the extent directed by the Board.
(5) The employees of the Authority are not subject to the requirements or rights contained in title 52 of this code, the National Public Service System Act, or any of its subsidiary regulations.
(6) Subject to satisfactory arrangements with the FSM National Government and the governments of the several States, the Authority is to acquire, lease or otherwise take over in any lawful manner the books, property, and operations of any preexisting revenue authority; PROVIDED, HOWEVER, that ownership of books and records herein conveyed, and the right of access thereto, shall remain with each respective government.
Source: PL 16-75 § 41.
Cross-reference: The statutory provisions on the President and the Executive are found in title 2 of this code. The statutory provisions on the FSM Congress are found in title 3 of this code.
Editor’s note: The words “the Code of the Federated States of Micronesia” in subsections (1), (3), and (5) of this section are changed to “this code” to comport with standard code format.
A reference in any other legislation, regulation, order, or other enactment or in any agreement, deed, instrument, application, notice, or other document whatsoever to:
(1) the person charged with the responsibility of enforcement of a revenue law to which this chapter applies must be read as a reference to the CEO; or
(2) a preexisting revenue authority must be read as a reference to the Authority.
(1) Notwithstanding anything in this chapter to the contrary, no policy or procedure adopted, decision made, business transacted, or action taken by or under the authority of the Board, CEO, or the Authority shall be valid, insofar as applying to the administration or enforcement of a revenue law of a government, unless such policy, procedure, decision, business transaction, or action is not inconsistent with a revenue law of such government.
(2) The applicability of and consistency with a law of a Government shall be determined by the chief legal officer of such Government.
The Board shall adopt such regulations as may be necessary for the enforcement of this chapter, and such regulations shall have the force and effect of law if they are not in conflict with the express provisions of this chapter or other applicable laws.