The American Samoa Treasurer has issued a warning to local residents who filed taxes in the United States that it is an illegal activity and subject to federal criminal penalties.
Dr Falema'o Phil Pili has told a cabinet meeting his office has seen a drop in the number of people filing tax returns, with the Tax Office having only received about 3,000 tax returns compared to the same time last year, with some 8,000 returns.
Dr Pili says he suspects the drop is due to residents filing taxes in the US in order to get larger tax refunds from the federal earned income tax credit, which is something that tax payers in American Samoa are not entitled to claim.
Dr Pili says tax payers need to realise the consequences of such activities.
