This chapter and chapter 11.05, the Samoan Income Tax, must be interpreted and administered in a manner to:
(1) prevent the collection of the Samoan Income Tax at the source on wages which, by virtue of section 931(i) of the United States Internal Revenue Code of 1954, are subject to the collection of the United States Income Tax at the source;
(2) suspend the assessment of interest or penalty on that amount of unpaid Samoan Income Tax, refund to which a taxpayer is entitled from the Internal Revenue Service for the same taxable period; provided, that the Samoan Income Tax is paid within 10 days of the receipt of the U.S. income tax refund, but no later than the 15th day of the 6th month following the due date of the Samoan return(determined with regard to any extension of time for filing); and provided also, that the Samoan Income Tax return is timely filed including extensions granted. In the event the Samoan tax return is not timely filed, the provisions for a 5% negligence penalty as provided in section 6653(a) of the Internal Revenue Code must apply to the total tax due American Samoa, unless delay in filing is due to fraud, in which case the fraud penalty of 50% as imposed by section 6653(b) of the Internal Revenue Code must apply;
(3) deny the relief offered in subsection(b) to taxpayers who do not avail themselves of the credit allowed by sections 33 and 901 of the United States Internal Revenue Code of 1954 against their United States Income Tax;
(4) treat a citizen or resident of the United States as a citizen or resident of American Samoa for purposes of section 152(b)(3), relating to the definition of a dependent, and section 6013(a)(l), relating to joint returns by a husband and wife, of the United States Internal Revenue Code of 1954;
(5) give appropriate and binding effect on the Governor and the High Court for action taken by the Tax Court, or any court of competent jurisdiction, of the United States.History:1965, PL 9-22; 1971, PL 12-18 § 1;amd 1980, PL 16-87 § 1; amd 1983, PL 18-2 § 1.
Amendments: 1983 Subsection (5) amended to eliminate the binding effect of action on specific income tax returns.
1980 Amended subsection (2) and added subsection (5).