The Senate has passed a bill that establishes a 1% alternative minimum tax for businesses that over an extended period of time reports a loss.
The bill was approved by a unanimous 14-0 vote.
Passage of the bill followed a hearing of the Senate Budget and Appropriations Committee, led by Chairman Senator Magalei Logovii, with the ASG Revenue Task Force.
Task Force members present were the Chairman, Attorney General Talauega Eleasalo Ale, Treasurer Ueligitone Tonumaipe’a, Budget Director Catherine Saelua, Acting Chief Customs Officer Keith Gebauer, Port Director Taimalelagi Claire Poumele, Director of Commerce , Fuiavailiili Keniseli Lafaele and the Governor’s Special Advisor, Iulogologo J Pereira.
Task Force Chairman Talauega said at the end of the hearing that if the measure is endorsed, it’s his interpretation that it will include all businesses operating in American Samoa.
He said if they feel small businesses should be exempted from this legislation and tax only corporations, it’s up to Fono leaders if they feel that the small businesses should be exempted from this legislation and tax only corporations.
Senator Satele Galu told the Revenue Task Force that they need to enforce the law and do their work by carrying out investigations when a business continually reports a loss, but remains in business.