13 Jul 2002

American Samoa government seeking outstanding tax from Chinese business

4:04 am on 13 July 2002

The American Samoa government has ordered a business owned by Chinese nationals to pay more than 8 -million US dollars in delinquent taxes.

The government claims that Oriental Overseas Enterprises and it's three Chinese partners, who are legal residents of American Samoa, had incorrectly calculated partnership expenses and it's cost of goods sold.

A further claim against the Chinese owned business is the incorrect calculation of it's taxable income and tax owed to the government.

The government accused the company and its partners of negligence or intentional disregard of tax rules and regulations of American Samoa and the US Internal Revenue Service.

However, Oriental Overseas Enterprises has filed a motion asking the High court to determine that there were no deficiencies and that it is not liable for any additional penalties.

The company argued that all it's taxes and cost of goods expenses were correctly calculated.

A court hearing is set for early next month.