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EDC Company Sues GVI Over Decade-Long Tax Refund Delay, With $300,000 in Interest Piling Up Each Quarter

  • Janeka Simon
  • March 04, 2024

A local loan servicing company is suing the Government of the Virgin Islands for money it says it is owed for income tax overpayments.  Ocwen USVI Services LLC, in a complaint filed with the District Court of the Virgin Islands on February 8, says that the Bureau of Internal Revenue owes it over $20 million in tax refunds and interests. The issue dates back to tax year 2013, when Ocwen Mortgage Services, a beneficiary of the Economic Development Commission program, made income tax payments of over $17 million to BIR. The company’s tax return filed that year — one year after official commencing operations in the USVI — showed an overpayment of $927,546, which it elected to roll over to tax year 2014, according to documents filed in court.  The payments for tax year 2014 were over $20 million which, when the company’s tax return was filed, reportedly represented an overpayment of over $14 million. Like the previous tax year, OMS decided to use the overpayment as a credit for the follo...