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 XI
Taxation Offenses
[FOR REFEREENCE ONLY]
SECTIONS
§ 873. Offense for failure to file tax return.
§ 874. Offense for failure to comply with obligations under this chapter.
§ 875. Offense for failure to maintain proper records.
§ 876. Offenses for improper use of Taxpayer Identification Number.
§ 877. Offense for making false or misleading statements.
§ 878. Offense for obstruction of revenue officer.
§ 879. Offense for aiding or abetting a taxation offense.
§ 880. Offense relating to seized goods or temporarily closed premises.
§ 881. Offenses by revenue officers.
§ 882. Offenses by companies.
§ 883. Failure to comply with a court order.
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 65 of PL 17-50 added a subchapter XI of chapter 8 entitled Taxation Offenses.
(1) A taxpayer who, without reasonable excuse, fails to file a tax return by the due date is guilty of an offense.
(2) Penalty. A person convicted of an offense under this section shall be subject to a fine not exceeding five hundred dollars ($500), or, if a natural person, imprisoned for not more than six months, or both.
Source: PL 17-50 § 66.
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 901 to 873 to allow all of the sections in this chapter to have eight hundred section numbers.
(ii) comply with a notice served on the person under section 827 of this title;
(iii) provide security as required under section 829 of this title;
(iv) provide facilities and assistance as required by section 826(4) of this title; or
(v) comply with a notice under section 844 of this title; or
(b) who, knowing that a certificate has been issued under section 830(2) of this title, leaves or attempts to leave the FSM without paying the tax due or making an arrangement satisfactory to the CEO for payment.
(2) Penalty. A person convicted of an offense under this section shall be subject to a fine not exceeding five hundred dollars ($500), or, if a natural person, imprisoned for not more than six months, or both.
Source: PL 17-50 § 67.
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 902 to 874 to allow all of the sections in this chapter to have eight hundred section numbers.
(1) A taxpayer who knowingly or recklessly fails to maintain accounts, documents, or records as required under a revenue law is guilty of an offense.
(2) Penalty. A taxpayer convicted of an offence under subsection (1) of this section shall be subject to a fine not exceeding one thousand dollars ($1,000), or, if a natural person, imprisoned for not more than one year, or both.
(3) A taxpayer convicted of an offense under subsection (1) of this section is subject to the immediate revocation of any existing license to do business in the FSM that has been issued to the taxpayer.
Source: PL 17-50 § 68.
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 903 to 875 to allow all of the sections in this chapter to have eight hundred section numbers.
(1) A person who uses a false Taxpayer Identification Number on any tax return or document prescribed or used for the purposes of a revenue law is guilty of an offense.
(2) Penalty. A person convicted of an offense under subsection (1) of this section shall be subject to a fine not exceeding one thousand dollars ($1,000), or, if a natural person, imprisoned for not more than one year, or both.
(3) A person who uses the Taxpayer Identification Number of another person is treated as having used a false Taxpayer Identification Number, unless the Taxpayer Identification Number has been used with the permission of that other person on a document relating to the tax affairs of that other person.
(4) A person who fails to apply for cancellation of the person’s Taxpayer Identification Number as required under section 847 of this title is guilty of an offense.
(5) Penalty. A person convicted of an offense under subsection (4) of this section shall be subject to a fine not exceeding five hundred dollars ($500).
Source: PL 17-50 § 69.
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 904 to 876 to allow all of the sections in this chapter to have eight hundred section numbers.
(1) A person is guilty of an offense if the person knowingly or recklessly:
(a) makes a statement to a revenue officer that is false or misleading in a material particular; or
(b) omits from a statement made to a revenue officer any matter or thing without which the statement is false or misleading in a material particular.
(2) Penalty. A person convicted of an offense under this section shall be subject to a fine not exceeding fifty thousand dollars ($50,000), or, if a natural person, imprisoned for not more than one year, or both.
(3) Section 869(5) of this title applies in determining whether a person has made a statement to a revenue officer.
Source: PL 17-50 § 70.
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 905 to 877 to allow all of the sections in this chapter to have eight hundred section numbers.
(1) A person who obstructs a revenue officer in the performance of duties under any revenue law is guilty of an offense.
(2) Penalty. A person convicted of an offense under this section shall be subject to a fine not exceeding one thousand dollars ($1,000), or, if a natural person, imprisoned for not more than one year, or both.
Source: PL 17-50 § 71.
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 906 to 878 to allow all of the sections in this chapter to have eight hundred section numbers.
A person who aids, abets, assists, incites, or induces another person to commit an offense under a revenue law (referred to as the “principal offense”) is guilty of an offense and is liable for the same penalty as imposed for the principal offense.
Source: PL 17-50 § 72.
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 907 to 879 to allow all of the sections in this chapter to have eight hundred section numbers.
(1) A person is guilty of an offense if the person:
(a) takes any goods that have been seized under section 828 of this title or that are the subject of a warrant under subchapter VI of this chapter or that are in premises the subject of an order under section 831 of this title; or
(b) before, or at, or after, any seizure of goods under section 828 of this title or proceedings under subchapter VI of this chapter, staves, breaks or destroys any goods, or documents relating to any goods, to prevent:
(i) the seizure or the securing of the goods; or
(ii) the proof of an offence; or
(c) enters premises the subject of an order under section 831 of this title without the permission of the CEO.
(2) Penalty. A person convicted of an offense under this section shall be subject to a fine not exceeding one thousand dollars ($1,000), or, if a natural person, imprisoned for not more than one year, or both.
Source: PL 17-50 § 73.
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 908 to 880 to allow all of the sections in this chapter to have eight hundred section numbers.
(1) A revenue officer who directly or indirectly asks for, or takes in connection with any of the officer’s duties, any payment or reward whatsoever, whether pecuniary or otherwise, or promise or security for any such payment or reward, not being a payment or reward that the officer was lawfully entitled to receive is guilty of an offense.
(2) Penalty. A person convicted of an offense under subsection (1) of this section shall be subject to a fine not exceeding fifty thousand dollars ($50,000), or imprisoned for not more than one year, or both.
(3) A revenue officer who enters into or acquiesces in any agreement to do any act or thing, abstain from doing any act or thing, permit or connive in the doing of any act or thing, or conceal any act or thing, whereby the National or a State Government is or may be defrauded of revenue, or that is contrary to the provisions of a revenue law or to the proper execution of the officer’s duty is guilty of an offense.
(4) Penalty. A person convicted of an offense under subsection (3) of this section shall be subject to a fine not exceeding fifty thousand dollars ($50,000), or imprisoned for not more than one year, or both.
(5) A person who directly or indirectly offers or gives to a revenue officer any payment or reward whatsoever, whether pecuniary or otherwise, or any promise or security for any payment or reward, not being a payment or reward that the officer was lawfully entitled to receive, is guilty of an offense.
(6) Penalty. A person convicted of an offense under subsection (5) of this section shall be subject to a fine not exceeding fifty thousand dollars ($50,000), or, if a natural person, imprisoned for not more than one year, or both.
(7) A person who proposes or enters into any agreement with a revenue officer in order to induce the officer to do any act or thing, abstain from doing any act or thing, permit or connive in the doing of any act or thing, or conceal any act or thing, whereby the National or a State Government is or may be defrauded of revenue, or that is contrary to the provisions of a revenue law or to the proper execution of the officer’s duty is guilty of an offense.
(8) Penalty. A person convicted of an offense under subsection (7) of this section shall be subject to a fine not exceeding fifty thousand dollars ($50,000), or, if a natural person, imprisoned for not more than one year, or both.
(9) For the purposes of this section, a revenue officer includes any person employed or engaged by the Authority in any capacity and includes a director or former director of the Board, a member or former member of a committee of the Board, a person invited to a Board or committee meeting, or a former officer or employee of the Authority.
Source: PL 17-50 § 74.
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 909 to 881 to allow all of the sections in this chapter to have eight hundred section numbers.
(1) If an offense under a revenue law is committed by a company, the offense is treated as having been committed by every person who, at the time the offense was committed, was:
(a) the chief executive officer, public officer, managing director, a director, company secretary, or other similar officer of the company; or
(b) acting or purporting to act in that capacity.
(2) Subsection (1) of this section does not apply to a person if:
(a) the offense was committed without that person’s consent or knowledge; and
(b) the person, having regard to the nature of the person’s functions and all the circumstances, has exercised reasonable diligence to prevent the commission of the offense.
Source: PL 17-50 § 75.
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 910 to 882 to allow all of the sections in this chapter to have eight hundred section numbers.
Upon conviction of a person of an offense under this subchapter, and the failure of the person to comply with a court order, the person shall be subject to the provisions and penalties of section 119 of title 4 of this code.
Source: PL 17-50 § 76.
Cross-reference: Section 119 of title 4 (Judiciary) of this code is on Contempt.
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 911 to 883 to allow all of the sections in this chapter to have eight hundred section numbers.