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PAC: AG?s Chambers dragging feet on debts

Despite millions of dollars still owed to Government by tax delinquents, the Attorney General?s Chambers is stalling on taking action to recover the debts, according to the Public Accounts Committee.

The PAC?s latest report recommended that the Finance Ministry ?support the Tax Commissioner and the Director of Social Insurance in their efforts to address the serious lack of cooperation from the Attorney General?s Chambers in pursuing delinquent debts?.

It said that the AG?s Chambers have, since 1999, been reluctant to pursue civil action aimed at recovering the debts.

?A small number of cases have been prosecuted in Magistrates? Court and fines have been assessed in those cases. However, the delinquents paid the small fines assessed on them by the court, but had not paid their long-outstanding tax and pension contribution arrears,? the report states.

?More recently, six more cases have been referred to the Attorney General?s Chambers for civil prosecution. However, Chambers suggested that the Social Insurance Department should prosecute the cases in Magistrates? Court.?

The PAC reported that in 2002, 30 files, representing a total of $2.4 million in debts, were forwarded by the Tax Commissioner?s Office to the Attorney General?s Chambers for prosecution.

All involved still operating businesses with debts going back two or three years, but only one civil action was initiated.

?More recently the Tax Commissioner informed your Committee that eight cases have been referred to the Director of Public Prosecutions and that these cases are being satisfactorily progressed, but little progress had been made on those referred to the Attorney General for civil action.?

The report continued: ?In January, 2004, the Tax Commissioner noted that her office had been successful in the courts in getting judgments against a number of delinquents, but the Attorney General?s Chambers had not taken action to enforce the judgments and continued to show a great deal of reluctance to proceed on debt collection cases. In spite of this, the debt management section in her department had recovered about $4 million in outstanding debts in 2003, and in addition had 198 negotiated payment instalment plans in operation for businesses in arrears.?

And it said that the Committee was told by the Solicitor General that while two staff had been assigned to debt collection, it was ?not a priority for counsel in Chambers and that more staff and resources would be required.?