Treasurer Dr Falemao Phil Pili is clearing the air on rumors circulating that the Treasury Department is replacing long time Tax Manager Melvin Joseph at the Tax Office.

“At the time being the Treasury Department is advertising two Tax Auditor positions in the Tax Division, however with the Tax manager position, Mel and I are working on a succession plan and Mel’s position will be advertised at a later date,” Falema’o explained.

“When that time comes, Mel will be Treasury’s Special Tax Advisor, given his vast knowledge on tax issues and he’s an asset that Treasury will not let go,” said the Treasurer.

He also explained the succession plan, which he and Joseph discussed earlier this week, includes looking at applicants together, interview them and hire that person with Joseph training this new Tax Manager.

According to the Treasurer, a recent meeting regarding the new positions within the Tax Division were discussed with staff, and Tax Manager Joseph understood the goal that’s in place; and replacing him was not the intention.

“For the most part, I’ve enjoyed the Tax Office and I’ve enjoyed very much working with the staff, who deserve all the credit for their hard work. And for the most part, I’ve enjoyed dealing with the public and most of them are friendly,” said Joseph, who has been with the Tax Office for some 10-years while his current contract expires September 2014. 

Prior to his position at the ASG Tax office, Joseph was with the U.S. Internal Revenue Service for 42 years.

Joseph’s opinions and views on any revenue measures, especially when it comes to tax matters, are always sought by both the Senate and House. 

Lawmakers have always praised Joseph for his truthfulness in responding to direct questions, despite the fact it may be different from other ASG officials.

The most recent incident was last August when a Senate committee sought what they called “truthful” testimony from the government, and Joseph was summoned for his take on the ASG tax revenues projected for fiscal year 2013, which ends September this year. 

Under the FY 2013 budget proposal, total estimated tax revenue is set at $52.10 million and the Tax Office is charged with the collection of corporate taxes, individual income taxes and the military cover over tax — which totals $32.10 million.

Based on direct questions from then Senate Budget Committee chairman Sen. Lemanu Peleti Mauga and other senators, Joseph said he “was surprised” to see high revenue estimates for FY 2013 in taxes collected by the Tax Office.

Joseph was also asked several times for his forecast or his projection for FY 2013 tax revenue collections under the Tax Office’s jurisdiction and Joseph gave the same reply, “In my opinion, I think it’s $4 million or $5 million too high.”

Lemanu — who is now lieutenant governor — and his colleagues thanked Joseph for his honesty and Joseph reiterated that the responses he gave were his personal opinion”, to which the committee responded that it was an “honest” opinion. 

When the new administration took office in January this year, Gov. Lolo Matalasi Moliga told lawmakers that total projected revenue of $93.44 million for basic ASG operations included an “inflated forecast” from individual income taxes of $5.02 million.

Reporter Fili Sagapolutele contributed to this story.