House Speaker Sabino Anastacio has been ordered to pay $75,029 in taxes without penalties or interest, according to his attorney, who described the terms of the judgment following a report published on October 8, 2024.
The original article reported that Anastacio was ordered by the court to pay $3.5 million in taxes, penalties, and interest for failing to obtain a business license and pay taxes on real estate transactions dating back to 2015. However, during a campaign event in Ngchesar State on October 12, Anastacio’s attorney disputed the article, stating that his client is only required to pay $75,029 in taxes, not the reported $3.5 million.
The legal matter stems from criminal case No. 23-033, Republic of Palau vs. Sabino Anastacio, which involved a stipulated amendment stating that Anastacio failed to pay taxes on $1.875 million in income, violating the Unified Tax Act. The agreement specifies that Anastacio is responsible for the outstanding taxes owed, as determined by the Bureau of Revenue and Taxation.
According to Anastacio’s attorney, discussions with the Interim Special Prosecutor confirmed that the judgment does not include penalties or interest. The attorney also emphasized that the tax assessment attached to the court order, which included $780,000 in penalties and $2.6 million in interest, totaling $3.5 million, was misleading. The attorney stressed that only the $75,029 in taxes is owed.
When asked for clarification, Interim Special Prosecutor Tamara Hutzler noted that the April stipulated agreement specified the amount owed but did not explicitly address whether the entire Bureau of Revenue and Taxation assessment should be included.
Anastacio’s attorney reiterated that the agreement focuses solely on the taxes owed and excludes penalties and interest.
The report had garnered reactions from the public, most saying that judgment was too easy, a mere slap on the wrist.
During the campaign, the attorney defended Anastacio, stating that he had reported all income to the Ethics Commission and believed he was not required to pay taxes as a Palauan citizen when selling personal property. He was unaware that leasing his property would classify as a business requiring a license.
Anastacio has served as a delegate for Ngchesar State in the 6th and 7th Olbiil Era Kelulau (OEK). He was re-elected in 2013 following a change in the law, maintaining his position for three consecutive terms.