BIR claims businessman owes $4 million in taxes, after giving him tax refund
The V.I. Bureau of Internal Revenue is claiming that businessman and philanthropist William O. Perkins III owes nearly $4 million in taxes for 2020, after paying Perkins a $1.34 million tax refund for the same year, according to documents filed in U.S. District Court.
2025-01-15 11:57:43 - VI News Staff
Perkins filed a complaint against the BIR and Department of Finance on May 16, seeking an income tax refund of $1.14 million. The government agencies maintain funds “from which the Plaintiff’s income tax refund must be paid,” according to the complaint. “No reason exists why the Plaintiff’s income tax refund for the 2020 Tax Year should not be paid.”
The cash-strapped Virgin Islands government has long struggled to pay out timely tax refunds, leaving taxpayers like Perkins with two options: wait indefinitely, or take the BIR to court. Assistant V.I. Attorney General Ariel Smith filed a response on July 30, admitting that the BIR had not denied the tax refund. But Smith said the government needed time to conduct an audit and investigate Perkins’ residency. “If not verified, the Government will not be responsible for the Plaintiff’s 2020 tax refund,” according to Smith’s response. In addition, Perkins “has failed and refused to pay his net investment income obligation which automatically results in an adjustment of any tax refund that might be due,” Smith wrote.