NATIONAL COUNCIL ELECTS NEW SPEAKER

The East Timor National Council today postponed the election of a new Speaker until Monday, 9 April. Sixteen members voted in favour, three against and one abstained. The postponement was agreed based on the fact that 15 of the 36 National Council members were not in attendance. On 28 March CNRT President Xanana Gusmão resigned from the National Council as both Speaker and member. Today was the first session since the resignation. National Council member Manuel Carrascalão read a letter to the media regarding Gusmão’s resignation. The letter was written by eight members of the National Council and represents only the views of those eight members, not that of the National Council. In addition, the National Council approved a Regulation on Firearms, Ammunitions and Explosives in East Timor with eight amendments proposed by the Standing Committee on Judicial Affairs.

MR. RAMOS HORTA APPPOINTED
AS NATIONAL COUNCIL MEMBER

Cabinet Member for Foreign Affairs José Ramos-Horta was appointed on Saturday, 31 March as a member of the East Timor National Council by SRSG Sergio Vieira de Mello to fill the vacancy created by Xanana Gusmão’s resignation last week. CNRT President Xanana Gusmão, elected Speaker of the National Council last October, tendered his resignation on 28 March. Mr. Gusmão held a seat as a CNRT representative, therefore his replacement must be from the CNRT. Mr/ Ramos-Horta is one of CNRT Vice Presidents. Since a member of the National Council cannot also serve in the Transitional Cabinet, Ramos-Horta has offered his resignation from the Cabinet. However SRSG Vieira de Mello will reappoint Ramos-Horta as Cabinet Member for Foreign Affairs on 15 July, the expected date of the dissolution of the National Council. “Naturally, we will count on his continued involvement and guidance in foreign affairs, a field to which he is so uniquely able to contribute,” SRSG said on Saturday. SRSG Vieira de Mello will appoint an interim Cabinet Member for Foreign Affairs very soon.

FIRST PROSECUTION FOR EVADING TAX

The Commissioner of Taxation Thomas Story announced today details of the first prosecution to be sought for tax offences under the new taxation system for East Timor. In an indictment issued by the Dili District Court Prosecutors today, it is alleged that the proprietors of the Oasis Inn had failed to file taxation returns for Services Tax on eight separate occasions to the East Timor Revenue Service. The Oasis Inn is one of the largest hotels in Dili. The alleged offences carry fines of up to US$1,000 for each failure to file a tax return or imprisonment for up to three years. Mr. Story noted that the prosecution action was necessary given the repeated offences that are alleged. “We do not take this action lightly,” said Story. “We believe that there has been a deliberate and sustained attempt to evade taxation liabilities. Such actions will not be tolerated in East Timor and we have resources and systems in place to ensure that these people can be brought to account.”

Services Tax is a 10% tax on hotels and restaurants and other service providers that was introduced on 1 July 2000. Officers of the East Timor Revenue Service have conducted 18 special audits of businesses to check services tax obligations. Additional tax and penalties amounting to US$36,000 has resulted from these audits. The East Timor Revenue Service was created on 1 July 2000. So far, it has collected over US$8 million in taxes from the Timor Sea, wages tax and services tax.