16 May 2003

Marshalls local government condemned over failure to pay retirement taxes

3:32 pm on 16 May 2003

In a landmark ruling in the Marshall Islands, a judge has ordered the Kwajalein Atoll Local Government to pay nearly three million US dollars in taxes owed to the nation's social security administration.

The judgement, from High Court judge H. Dee Johnson, has given social security its biggest win so far in a 3 year battle to force agencies and individuals to meet their retirement tax payments.

The judgement, of two point eight six million dollars is for unpaid taxes, interest and penalties going back to 1993.

Judge Johnson says that by failing to pay the employer's or the workers contributions into the retirement fund, the Kwajalein Atoll Local Government had literally stolen its own employees futures.