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\widowctrl\ftnbj\aenddoc\notabind\wraptrsp\transmf\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\truncatefontheight\subfontbysize\sprsbsp\wpjst\lytprtmet\hyphcaps0\horzdoc\dghspace120 \dgvspace120\dghorigin1701\dgvorigin1984\dghshow0\dgvshow3\jcompress\viewkind4\viewscale100\nolnhtadjtbl\rsidroot12679053 \fet0{\*\ftnsep \pard\plain \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \insrsid12679053 \chftnsep \par }}{\*\ftnsepc \pard\plain \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid12679053 \chftnsepc \par }}{\*\aftnsep \pard\plain \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid12679053 \chftnsep \par }}{\*\aftnsepc \pard\plain \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid12679053 \chftnsepc \par }}\sectd 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.}}{\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}} {\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\insrsid12679053\charrsid15557608 IN THE SUPREME COURT OF GUAM}{\insrsid15557608 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\insrsid15557608 \par }\pard \qj \li1440\ri1440\nowidctlpar\faauto\rin1440\lin1440\itap0\pararsid15557608 {\b\insrsid12679053\charrsid15557608 IN }{\b\i\insrsid12679053\charrsid15557608 RE }{\b\insrsid12679053\charrsid15557608 REQUEST OF }{ \b\i\insrsid12679053\charrsid15557608 I MINA}{\b\i\insrsid14296377\charrsid15557608 '}{\b\i\insrsid12679053\charrsid15557608 BENTE SING}{\b\i\insrsid14296377\charrsid15557608 '}{\b\i\insrsid12679053\charrsid15557608 KO NA LIHESLATURAN GU\'c5HAN }{ \b\insrsid12679053\charrsid15557608 RELATIVE TO THE APPLICATION OF THE EARNED INCOME TAX CREDIT PROGRAM TO GUAM TAXPAYERS (}{\b\insrsid14296377\charrsid15557608 "}{\b\insrsid12679053\charrsid15557608 The EIC question}{\b\insrsid14296377\charrsid15557608 " }{\b\insrsid12679053\charrsid15557608 )}{\insrsid15557608 \par }\pard \qj \li0\ri1440\nowidctlpar\faauto\rin1440\lin0\itap0\pararsid15557608 {\insrsid15557608 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\b\insrsid12679053\charrsid15557608 OPINION}{\insrsid12679053\charrsid15557608 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\b\insrsid12679053\charrsid15557608 Filed:}{\b\insrsid15557608 }{\b\insrsid12679053\charrsid15557608 February 9, 2001}{\insrsid12679053\charrsid15557608 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\b\insrsid12679053\charrsid15557608 Cite as 2001 Guam 3}{\insrsid15557608 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\insrsid15557608 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 Supreme Court Case Number: CRQ00-001 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 Request for Declaratory Judgment pursuant to \par section 4104 of Title 7 of the Guam Code Annotated \par Argued and submitted September 7, 2000 \par Hag\'e5t\'f1a, Guam \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 \par }\trowd \irow0\irowband0\lastrow \ts11\trqc\trgaph120\trleft-120\trftsWidth1\trftsWidthB3\trftsWidthA3\trpaddl120\trpaddr120\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth4464\clshdrawnil \cellx4344\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth4464\clshdrawnil \cellx8808\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid15557608 {\insrsid12679053\charrsid15557608 \par }\pard \ql \fi-2880\li2880\ri0\nowidctlpar\intbl\tx-1440\faauto\rin0\lin2880\pararsid15557608 {\ul\insrsid12679053\charrsid15557608 Appearing for the Legislature:}{\insrsid12679053\charrsid15557608 \par }\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\rin0\lin0\pararsid15557608 {\insrsid12679053\charrsid15557608 Therese M. Terlaje, Esq. \par Barcinas & Terlaje, P.C. \par Suite 216, Union Bank Building \par 194 Hernan Cortes Avenue \par Hag\'e5t\'f1a, Guam 96910 \par \par \cell \par }{\ul\insrsid12679053\charrsid15557608 Appearing for the Governor and his}{\insrsid12679053\charrsid15557608 \par }{\ul\insrsid12679053\charrsid15557608 Designee, the Director of the Department of}{\insrsid12679053\charrsid15557608 \par }{\ul\insrsid12679053\charrsid15557608 Revenue and Taxation:}{\insrsid12679053\charrsid15557608 \par David C. Sullivan, Esq. \par Assistant Attorney General \par Office of the Attorney General \par Suite 2-200E, Judicial Center Building \par Hag\'e5t\'f1a, Guam 96910\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\insrsid12679053\charrsid15557608 \trowd \irow0\irowband0\lastrow \ts11\trqc\trgaph120\trleft-120\trftsWidth1\trftsWidthB3\trftsWidthA3\trpaddl120\trpaddr120\trpaddfl3\trpaddfr3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth4464\clshdrawnil \cellx4344 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth4464\clshdrawnil \cellx8808\row }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\insrsid15557608 \par }{\insrsid12679053\charrsid15557608 BEFORE: BENJAMIN J.F. CRUZ, Chief Justice; PETER C. SIGUENZA, JR., Associate Justice; and JOHN A. MANGLONA, Designated Justice.}{\insrsid15557608 \par \par }{\b\insrsid12679053\charrsid15557608 MANGLONA, J.:}{\insrsid12679053\charrsid15557608 \par }{\b\insrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [1]}{\insrsid12679053\charrsid15557608 \tab The Legislature submits to this court a request for a declaratory judgment pursuant to 7 GCA }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 4104.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The Legislature specifically seeks this court}{\insrsid2175088\charrsid15557608 '}{ \insrsid12679053\charrsid15557608 s opinion as to whether Guam}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s taxpayers, otherwise eligible, are entitled to the Earned Income Tax Credit, pursuant to a provision in Subtitle A of the Internal Revenue Code and applied to Guam by operation of the Organic Act, 48 U.S.C. }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 1421 et seq.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The Legislature also asks whether the Director of the Department of Revenue and Taxation is required to pay the credit to eligible taxpayers.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 We find that this court has jurisdiction over this matter notwithstanding the District Court of Guam}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s exclusive original jurisdiction over taxpayer suits involving the Guam Territorial Income Tax.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 We hold that eligible taxpayers are entitled to credit and that the Executive Branch must enforce it.}{ \insrsid15557608 }{\insrsid12679053\charrsid15557608 Accordingly, we answer both of the Legislature}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s questions in the affirmative. \par \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\b\insrsid12679053\charrsid15557608 I.}{\insrsid12679053\charrsid15557608 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\b\insrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [2]}{\insrsid12679053\charrsid15557608 \tab Although permitted by Congress, Guam has not promulgated its own income tax code.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Instead, the Organic Act imposes certain provision of the Internal Revenue Code of the United States (}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 I.R.C.}{ \insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 ) as the income tax applicable to Guam taxpayers.}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 This tax, designated the Guam Territorial Income Tax (}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 GTIT}{ \insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 ), mirrors certain provisions of the I.R.C.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Such mirroring includes any modification or repeal of I.R.C. sections that the United States may from time-to-time make effective for a given tax year, as well as enactments of new provisions. \par }{\b\insrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [3]}{\insrsid12679053\charrsid15557608 \tab Section 31 of the Organic Act, as amended, specifically lists the mirroring provisions, including }{\i\insrsid12679053\charrsid15557608 inter alia}{ \insrsid12679053\charrsid15557608 Subtitle A of the I.R.C., which contains the Earned Income Tax Credit (}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{ \insrsid12679053\charrsid15557608 EIC}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 ).}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 See}{\insrsid12679053\charrsid15557608 48 U.S.C. }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 1421i(d) (}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 section 1421i(d)}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f38\fs24}}}{\insrsid12679053\charrsid15557608 ) and 26 U.S.C. }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 32 (}{ \insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 section 32").}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The EIC, which is still in force, only became effective in tax year 1975, and was not part of the I.R.C. when the Organic Act was passed in 1950, nor was it applicable when the United States modified the Organic Act in 1954.}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 The EIC was enacted, among other things, to provide special tax benefits to low-income workers by reducing tax burdens and making employment more attractive than welfare.}{\insrsid15557608 }{ \i\insrsid12679053\charrsid15557608 See Sorenson v. Secretary of Treasury of the United States}{\insrsid12679053\charrsid15557608 , 475 U.S. 851, 106 S. Ct. 1600, 89 L. Ed. 2d 855 (1986). \par }{\b\insrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [4]}{\insrsid12679053\charrsid15557608 \tab Under the mirror code, Guam taxpayers have been eligible for the EIC since its effective date.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 In 1989,}{ \insrsid15557608 }{\insrsid12679053\charrsid15557608 EIC applicability was questioned for the first time.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 In response to a request from the Department of Administration (}{ \insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 DOA}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 ), on or about June 23, 1989, the Attorney General}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s office (}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 AG}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s office}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 ) issued Memorandum Opinion No. DOA 89-0750, concluding that the Government of Guam (}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 government}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 ) is obligated to pay EIC in excess of tax owing (}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 refundable EIC}{ \insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 ).}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The AG}{\insrsid2175088\charrsid15557608 '} {\insrsid12679053\charrsid15557608 s office reasoned that, because the Organic Act mandates that Guam mirror the I.R.C. in implementing the GTIT, the EIC applies to Guam taxpayers unless Guam de-links from the I.R.C. and enacts its own tax code.}{ \insrsid15557608 }{\insrsid12679053\charrsid15557608 The AG}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s office also opined that the refundable EIC be paid from the General Fund, in the same manner as ordinary refunds, consistent with the practice in the United States, where the refundable EIC are classified as tax outlay and paid out of the U.S. Treasury.}{ \cs15\super\insrsid12679053\charrsid15557608 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\super\insrsid12679053 \chftn }{\fs20\insrsid12679053 The United States reimbursed Guam for paying the refundable EIC for several years before the reimbursement was halted during the Carter Administration. }{\i\fs20\insrsid12679053 See}{\fs20\insrsid12679053 Mem. Op. No. DOA 89-0750. }}}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 See }{\insrsid12679053\charrsid15557608 Mem. Op. No. DOA 89-0750. \par }{\b\insrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [5]}{\insrsid12679053\charrsid15557608 \tab On or about January 4, 1996, the AG}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s office issued Memorandum Opinion No. DRT/DOA 96-001, which revoked Memorandum Opinion No. DOA 89-0750 and adopted instead, the Department of Revenue and Taxation}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s (}{ \insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 Rev & Tax}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s}{ \insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 ) Revenue Ruling 96-001.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Without legal analysis, the AG}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s office ruled that: (1)}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 the EIC does not apply to Guam and that Rev & Tax should not administer the EIC, and (2) Rev & Tax should not certify to DOA any amounts owing as refundable EIC.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 T he ruling further declared that, even if the EIC applied to Guam, Rev & Tax could not certify the amount each eligible taxpayer was to receive because the Legislature made no appropriations to fund the refundable EIC.}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 The ruling was retroactively applied to tax year 1994, but under the discretion of the Director of Rev & Tax (}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f38\fs24}}}{\insrsid12679053\charrsid15557608 Director}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 ), tax returns would not be audited.}{ \insrsid15557608 }{\insrsid12679053\charrsid15557608 As indicated, the AG}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s opinion simply deferred to Revenue Ruling 96-001 and also to the Director}{ \insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s exclusive administrative responsibility to determine what tax shall apply in mirroring the I.R.C. \par }{\b\insrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [6]}{\insrsid12679053\charrsid15557608 \tab In response to the Executive Branch}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s reversal of this tax policy, the Legislatur e enacted statutes to ensure that Guam taxpayers could receive the refundable EIC.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Public Law 23-74 contains continuing appropriations to finance the refundable EIC.}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 Section 4108, Title 11 of the GCA institutes the Guam Earned Income Program (}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{ \insrsid12679053\charrsid15557608 Guam EIC}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 ), mirroring 26 U.S.C. }{ \insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 32.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Section 4104, Title 11 of the GCA authorizes the expenditure of funds to pay refundable credits under the Guam EIC.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Section 50103, Title 11 of the GCA requires the establishment of a formula for reserving income tax receipts to pay the refundable EIC in a timely manner.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Section 50103, Title 11 of the GCA provides for the deposit of amounts reserved for the refundable EIC, thereby ensuring the availability of funds.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Although these measures have become law, the Executive Branch has ignored their policy mandate and refused to implement the EIC. \par }{\b\insrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [7]}{\insrsid12679053\charrsid15557608 \tab Due to the Executive Branch}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s intransigent position, on M ay 30, 2000, the Legislature filed its Complaint for Declaratory Judgment seeking this court}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s opinion on the applicability of and the Executive Branch}{ \insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s obligation to enforce the EIC.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The Legislature presents for our review the following questions:}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 (1) whether Guam taxpayers are entitled to the EIC; and (2) whether the Director is required to pay refundable credits.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The Governor and the Director (collectively }{ \insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 Governor}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 ) have joined in the action opposing the Legislature}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s position on both issues. \par \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\b\insrsid12679053\charrsid15557608 II.}{\insrsid12679053\charrsid15557608 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\b\insrsid12679053\charrsid15557608 [8]}{\insrsid12679053\charrsid15557608 \tab The court is confronted, as a threshold matter, with the Governor}{\insrsid2175088\charrsid15557608 '} {\insrsid12679053\charrsid15557608 s initial question of whether we lack jurisdiction over this request.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The Legislature defends by asserting that 7 GCA }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 4104 grants this court jurisdiction to address the questions posed by the request for a declaratory judgment.}{\insrsid12679053 \par }{\insrsid4157821\charrsid15557608 \par }\pard \qj \li0\ri0\keep\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\b\insrsid12679053\charrsid15557608 [9]}{\insrsid12679053\charrsid15557608 \tab The Governor argues that any matter dealing with the GTIT lies within the exclu sive and original jurisdiction of the District Court of Guam, as provided under section 1421i(h) of the Organic Act.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The Governor further contends that }{\i\insrsid12679053\charrsid15557608 Government of Guam v. Superior Court of Guam (Guam Dai-Ichi Hotel, Inc., Real Party in Interest)}{\insrsid12679053\charrsid15557608 held th at legislation, which can be construed to be a tax measure, would be properly brought to the District Court when a controversy arises with respect to such legislation.}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 See}{ \insrsid12679053\charrsid15557608 998 F.2d 754 (9th Cir. 1993) (disputing whether GEDA qualifying certificates may be filed in district court).}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Thus, the dispositive inquiry concerning jurisdiction is whether the action here falls within the ambit of the District Court}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s exclusive original jurisdiction.}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 In examining this question, we turn to 48 U.S.C. }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 1421i(h), which provides: \par }\pard \qj \li0\ri720\nowidctlpar\faauto\rin720\lin0\itap0\pararsid4157821 {\insrsid4157821 \par }\pard \qj \li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 1421i.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Income Tax. \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4157821 {\insrsid12679053\charrsid15557608 \par }\pard \qj \li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 (h) Jurisdiction of District Court; suits for recovery or collection of taxes; payment of judgment.}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 (1) Notwithstanding any provision of Section 22 of this Act [section 1424 o f Title 48] or any other provisions of law to the contrary, the District Court of Guam shall have exclusive original jurisdiction over all judicial proceedings in Guam, both criminal and civil, regardless of the degree of the offense or of the amount invo lved, with respect to the Guam Territorial Income Tax. \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 \par 48 U.S.C. }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 1421i(h)(1) (1954).}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Section 1421i(h) plainly states that the District Court has exclusive original jurisdiction over all civil and criminal judicial proceedings for any offense and any amount when the GTIT is the subject matter of the litigation.}{\insrsid12679053 \par }{\insrsid4157821\charrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [10]}{\insrsid12679053\charrsid15557608 \tab As we review section 1421i, we observe illustrations in its language that the District Court}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s jurisdiction extends to taxpayer suits involving to specific tax controversies.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Subsection (h)(2) specifically permits aggrieved individuals to sue for taxes, penalties or any sum erroneously assessed or collected; subsection (h)(3) provides certain protections to the Governor and government employees who car ry out their duties in enforcing the GTIT.}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 See }{\insrsid12679053\charrsid15557608 48 U.S.C. }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 1421li(h)(2)-(h)(3); }{\i\insrsid12679053\charrsid15557608 see also}{\insrsid12679053\charrsid15557608 48 U.S.C. }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 1421i(a) (permitting the legislature to levy additional ten percent on top of taxpayers}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 liabilities); 48 U.S.C. }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 1421i(c) and (d)(2) (authorizing the Governor to administer and enforce GTIT similar to power granted to the Secretary of the Treasury); 48 U.S.C. }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 1421i(f) (extending I.R.C. penalty provisions to Guam); 48 U.S.C. }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{ \insrsid12679053\charrsid15557608 1421i(g) (providing that the government may attach property of individual in violation of mirror code).}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 These provisions signal that the District Court}{ \insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s jurisdiction encompasses only taxpayer suits involving a specific tax controversy.}{\insrsid12679053 \par }{\insrsid4157821\charrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [11]}{\insrsid12679053\charrsid15557608 \tab Case law bolsters our interpretation of section 1421i(h).}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 In }{\i\insrsid12679053\charrsid15557608 Guam Dai Ichi Hotel}{\insrsid12679053\charrsid15557608 , the hotel sued for a rebate under the GEDA qualifying certification.}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 See}{\insrsid12679053\charrsid15557608 998 F.2d 754.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The District Court}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s jurisdiction was found pursuant to subsection (h).}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 See }{ \insrsid12679053\charrsid15557608 998 F.2d at 755.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The court in that case held: \par }\pard \qj \li0\ri720\nowidctlpar\faauto\rin720\lin0\itap0\pararsid4157821 {\insrsid4157821 \par }\pard \qj \fi720\li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 The language of the statute outlining the Federal District Court}{\insrsid2175088\charrsid15557608 '}{ \insrsid12679053\charrsid15557608 s jurisdiction also compels the conclusion that Federal District Court is where }{\i\insrsid12679053\charrsid15557608 disputes over rebate amounts should be litigated}{\insrsid12679053\charrsid15557608 .}{ \insrsid15557608 }{\insrsid12679053\charrsid15557608 Congress provided that the District Court should exercise jurisdiction over any judicial proceeding }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 with respect}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 to the territorial tax, expressly stating that any }{\i\insrsid12679053\charrsid15557608 suits alleging recovery or rebates of the Territorial tax}{\insrsid12679053\charrsid15557608 are to be heard in the district court.}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 48 U.S.C. }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 1421i(h)(2).}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 As the Appellate Division correctly concluded, the }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 plain reading} {\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 of both provisions of the jurisdictional statute }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 compels the conclusion that [Congress] contemplated that all suits for a refund of income taxes, whatever the basis for the suit, be brought in the District court.}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 \par }{\i\insrsid12679053\charrsid15557608 Id}{\insrsid12679053\charrsid15557608 . (emphasis added).}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Other cases provide examples of how section 1421i(h) has been invoked to confer jurisdiction over specific tax controversies.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 In }{\i\insrsid12679053\charrsid15557608 Government of Guam v. Kaanehe}{ \insrsid12679053\charrsid15557608 , the dispute centered on the collection of withholding taxes from a bar.}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 See}{\insrsid12679053\charrsid15557608 124 F. Supp. 15 (D. Guam 1954).}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The District Court examined the legality of assessments under GTIT involving an individual taxpayer in }{\i\insrsid12679053\charrsid15557608 Wilson v. Kennedy}{\insrsid12679053\charrsid15557608 , 123 F. Supp. 156 (D. Guam 1954).}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The Ninth Circuit also ruled on a taxpayer}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s challenge to tax on income earned while on Guam in }{\i\insrsid12679053\charrsid15557608 Phelan v. Taitano}{\insrsid12679053\charrsid15557608 , 233 F.2d 117 (9th Cir. 1956), on the recovery of GTIT paid in }{\i\insrsid12679053\charrsid15557608 Government of Guam v. Koster}{\insrsid12679053\charrsid15557608 , 362 F.2d 248 (9th Cir. 1966), a refund sought of GTIT in }{\i\insrsid12679053\charrsid15557608 Sayre & Co. v. Riddell}{\insrsid12679053\charrsid15557608 , 395 F.2d 407 (9th Cir. 1986) (en banc) (}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\i\insrsid12679053\charrsid15557608 Sayre}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 ), and refund of the business privilege tax in }{\i\insrsid12679053\charrsid15557608 Bank of America, Nat}{ \i\insrsid2175088\charrsid15557608 '}{\i\insrsid12679053\charrsid15557608 l Trust and Sav. Ass}{\i\insrsid2175088\charrsid15557608 '}{\i\insrsid12679053\charrsid15557608 n v. Chaco}{\insrsid12679053\charrsid15557608 , 539 F.2d 1226 (9th Cir. 1976) (per curiam) (}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\i\insrsid12679053\charrsid15557608 Chaco I}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 ).}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 In each of these cases, we find that the action involved a taxpayer and a specific tax controversy.}{\insrsid12679053 \par }{\insrsid4157821\charrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [12]}{\insrsid12679053\charrsid15557608 \tab Such a finding is consistent with federal constitutional and prudential limitations restraining district courts from assuming jurisdiction over various disputes.}{ \insrsid15557608 }{\insrsid12679053\charrsid15557608 The }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 case or controversy}{ \insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 limitation of the United States Constitution prohibits federal courts from rendering advisory opinions.}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 See Aetna Life Ins. Co. v. Haworth}{\insrsid12679053\charrsid15557608 , 300 U.S. 227, 57 S. Ct. 461 (1937); }{\scaps\insrsid12679053\charrsid15557608 U.S. Const.}{\insrsid12679053\charrsid15557608 amend. X.}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 Aetna}{\insrsid12679053\charrsid15557608 announced the meaning of }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 controversy}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 in the constitutional sense as follows: \par }\pard \qj \li0\ri720\nowidctlpar\faauto\rin720\lin0\itap0\pararsid4157821 {\insrsid4157821 \par }\pard \qj \fi720\li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 A }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{ \insrsid12679053\charrsid15557608 controversy}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 in this sense must be one that is appropriate for judicial determination.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 A justiciable controversy is thus distinguished from a difference or dispute of a hypothetical or abstract character; from one that is academic or moot.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The controversy must be defi nite and concrete, touching the legal relations of parties having adverse legal interests.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 It must be a real and substantial controversy admitting of specific relief through a decree of a conclusive character, as distinguished from an opinion advising what the law would be upon a hypothetical state of facts . . . . \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 \par 300 U.S. at 240-41, 57 S. Ct. at 464 (citations omitted).}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 In }{\i\insrsid12679053\charrsid15557608 Aetna}{\insrsid12679053\charrsid15557608 , the controversy concerned a specific insured, four specific life insurance policies, and a complaint that the policies be declared null and void by reason of lapse for nonpayment of premiums.}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 Id}{ \insrsid12679053\charrsid15557608 . at 237, 239, 57 S. Ct. at 462-63.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Such facts constituted a controversy in the constitutional sense.}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 Id}{ \insrsid12679053\charrsid15557608 . at 244, 57 S. Ct. at 465. \par }{\b\insrsid4157821 \par }{\b\insrsid12679053\charrsid15557608 [13]}{\insrsid12679053\charrsid15557608 \tab In contrast here, we are asked by the Legislature t o render an advisory opinion on the applicability of the EIC to Guam taxpayers and whether the Director is required to pay the refundable EIC.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Unlike }{\i\insrsid12679053\charrsid15557608 Guam Dai Ichi Hotel}{\insrsid12679053\charrsid15557608 and the other tax cases, no aggrieved taxpayer, no penalty nor contested assessment is involved in the instant case.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 No question arises here over whether the government owes any specific individual, or individuals, the refundable EIC.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Neither is there a controversy in the constitutional sense.}{ \cs15\super\insrsid12679053\charrsid15557608 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\super\insrsid12679053 \chftn }{\fs20\insrsid12679053 It might be argued that the District Court of Guam, not being a court created under Article III of the United States Constitution but a court created by Congress in exercise of its authority over the United States possessions, might not have the same cons titutional and prudential limitations as an Article III court. However, the Organic Act appears to set out these limitations on the District Court of Guam. Under the Organic Act, }{\fs20\insrsid12679053 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f38\fs20}}}{\fs20\insrsid12679053 [t]he District Court of Guam }{\i\fs20\insrsid12679053 shall have the jurisdiction of a district court of the United States}{\fs20\insrsid12679053 , including, but not limited to, the diversity jurisdiction provided for in }{\fs20\insrsid12679053 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f38\fs20}}}{\fs20\insrsid12679053 1332 of title 28, United States Code, and that of a bankruptcy court of the United States.}{\fs20\insrsid12679053 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f38\fs20}}}{\fs20\insrsid12679053 48 U.S.C. }{ \fs20\insrsid12679053 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f38\fs20}}}{\fs20\insrsid12679053 1424(b) (1954) (emphasis added). Thus, while not an Article III court, the District Court of Guam appears bound by similar constitutional and prudential limitations.}}}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 No specific legal relationship is at stake, no specific relief is sought, nor do the parties have direct adverse legal interests in this controversy.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Instead, the questions here, presented in the form of a request for declaratory judgment, involve only hypothetical taxpayers, otherwise eligible for EIC, and whether they are entitled to the tax credit.}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 Thus, it is the position of this court that the Legislature}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s request for declaratory judgment falls outside the District Court}{ \insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s jurisdiction as defined by the Organic Act. \par }{\b\insrsid4157821 \par }{\b\insrsid12679053\charrsid15557608 [14]}{\insrsid12679053\charrsid15557608 \tab We turn to the next inquiry of whether the instant case falls within our jurisdiction.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Congress granted the Legislature authority to create local courts and define their jurisdiction over certain proceedings.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Under the Organic Act,}{\insrsid12679053 \par }{\insrsid4157821\charrsid15557608 \par }\pard \qj \li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 The legislature may vest in the local courts jurisdiction over all causes in Guam over which any court established by the Constitution and laws of the United States does not have exclusive jurisdiction.}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 Such jurisdiction shall be subject to the exclusive or concurrent jurisdiction conferred on the District Court of Guam by section 1424(b) of this title. \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 \par 48 U.S.C. }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 1424-1.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Having determined that the District Court does not have e xclusive original jurisdiction over this request for declaratory judgment, we review the pertinent statute to determine if the Legislature has conferred on this court jurisdiction to hear such requests.}{\insrsid12679053 \par }{\insrsid4157821\charrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [15]}{\insrsid12679053\charrsid15557608 \tab Under 7 GCA }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 4104, \par }\pard \qj \li0\ri720\nowidctlpar\faauto\rin720\lin0\itap0\pararsid4157821 {\insrsid4157821 \par }\pard \qj \li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 The Governor, in writing, or the Guam Legislature, by resolution, }{\i\insrsid12679053\charrsid15557608 may request declaratory judgments from the Supreme Court as to the interpretation of any law, federal or local lying within the jurisdiction of the courts of Guam to decide, and upon any question affecting the powers and duties of the Governor and the operation of the Executive Branch, or the Guam Legislature, respectively.}{\i\insrsid15557608 }{\insrsid12679053\charrsid15557608 The declaratory judgments may be issued only where it is a matter of great public interest and the normal process of law would cause undue delay.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Such declaratory judgments shall not be available to private parties.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The Supreme Court shall, pursuant to its rules and procedure, permit interested parties to be heard on the questions presented and shall render its written judgment hereon.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Upon a writing, or resolution in the case of the Guam Legislature, by the party submitting the request for the declaratory judgment that the party wishes the Supreme Court to dismiss its petition for declaratory judgment, the Supreme Court shall no longer have jurisdiction and shall dismiss without prejudice the declaratory judgment case, provided that the request is filed wi th the Supreme Court at any time before the court renders its written decision. \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 \par 7 GCA }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 4104 (1994) (emphasis added).}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Thus, through the power given the Legislature from Congress, this court has been granted the a uthority to issue advisory opinions interpreting any federal or local law and deciding any question affecting the powers and duties of the Governor and the operation of the Executive Branch.}{\insrsid12679053 \par }{\insrsid4157821\charrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [16]}{\insrsid12679053\charrsid15557608 \tab The questions presented by the Legislature involve interpretation of federal law, specifically the Organic Act, as it relates to the Governor}{ \insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s enforcement duty and the applicability of the EIC, which is contained in the I.R.C.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The Legislature alleges that eligible taxpayers are deprived of the refundable EIC because of the Executive Branch}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s refusal to mirror the I.R.C. with regard to the EIC.}{ \insrsid15557608 }{\insrsid12679053\charrsid15557608 Furthermore, the court is concerned about the potential for undue delay in adjudicating these questions if the Legislature waited until a taxpayer pursued litigation on the EIC.}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 Because eligible taxpayers are generally indigent and without the financial means to challenge the Governor}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s decision not to pay out any refundable EIC, there is the possibility that such an action may never be filed.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 These considerations compel a finding that the Legislature}{ \insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s request for declaratory judgment, pursuant to 7 GCA }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{ \insrsid12679053\charrsid15557608 4104, is properly before this court.}{\insrsid12679053 \par }{\insrsid4157821\charrsid15557608 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\b\insrsid12679053\charrsid15557608 III.}{\insrsid12679053\charrsid15557608 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\b\insrsid4157821 \par }{\b\insrsid12679053\charrsid15557608 [17]}{\insrsid12679053\charrsid15557608 \tab Having decided that we have jurisdiction, we turn to the substance of the Legislature}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s request for declaratory judgment and the first question presented for our review.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 In asserting that Guam taxpayers are entitled to the EIC, the Legislature argues that, until}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 section 32 of the I.R.C. is expressly excluded from the GTIT, or until Guam enacts its own tax code in lieu of the mirror code, Guam must follow the EIC.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The Legislature contends that, according to }{\i\insrsid12679053\charrsid15557608 Sayre}{\insrsid12679053\charrsid15557608 and }{\i\insrsid12679053\charrsid15557608 Kaaneche}{\insrsid12679053\charrsid15557608 , section 1421i requires Guam to apply the I.R.C. to persons and incomes within the territory}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s boundaries.}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 See also}{ \insrsid12679053\charrsid15557608 I.R.C. }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 7651(2)(B) (extending the administration, collection and enforcement provisions of I.R.C. to U.S. possessions).}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The Legislature also emphasizes that, after Revenue Ruling 96-001 halted EIC payments to eligible taxpayers, it enacted a series of statutes making the EIC applicable to Guam taxpayers }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 to the full extent permitted by federal law}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{ \insrsid12679053\charrsid15557608 and approved continuing appropriations from the general fund to pay for the EIC.}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 See}{\insrsid12679053\charrsid15557608 Public Law Nos. 23-74, 24-61, 25-03, 25-43.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 According to the Legislature, the Governor is bound by both federal and Guam law to pay the refundable EIC to eligible taxpayers.}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 Because section 1421i imposes the enlisted provisions of the I.R.C. as the tax code of Guam, because section 32 is specifically included in the enlisted applicable chapters of the I.R.C., and because Guam law has made section 32 applicable to Guam taxpaye rs, the Legislature urges this court to hold that Guam taxpayers are entitled to receive the refundable EIC.}{\insrsid12679053 \par }{\insrsid4157821\charrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [18]}{\insrsid12679053\charrsid15557608 \tab The Governor counters by acknowledging that while, }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}} {\insrsid12679053\charrsid15557608 it is undeniably true that section 32 is part of Subtitle A of the [I.R.C.] . . . which applies to Guam . . .}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f38\fs24}}}{\insrsid12679053\charrsid15557608 , when viewed through the lens of the Organic Act, particularly those sections establishing the GTIT, Congress did not intend to make section 32 applicable to Guam.}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 Governor}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s Opening Brief at 13-14.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 In support of this argument, the Governor points to Congress }{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s omission of Social Security taxes from the Organic Act in order to shield Guam from Social Security}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s fiscal impacts.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The Governor argues that likewise the EIC does not apply to Guam since its funding in the United States is paid by Social Security taxes and Congress has not appropriated such funding to pay for the EIC on Guam.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Instead, the EIC requires the government to use its own funds to pay the EIC.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Labeling the EIC as a social welfare program disguised as a tax credit, the Governor asserts that nowhere in its legislative history is there an allusion that Congress expected the EIC apply to Guam. The Governor suggests that the absence of any mention of the EIC}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s applicability to Guam indicates that }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{ \insrsid12679053\charrsid15557608 Guam never crossed any one}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s mind.}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f38\fs24}}}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Governor}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s Opening Brief at 17.}{\insrsid12679053 \par }{\insrsid4157821\charrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [19]}{\insrsid12679053\charrsid15557608 \tab We disagree.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Nothing in section 32 of the I.R.C., nor its legislative history indicates that Congress}{ \insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s failure to address Guam and the other mirror code jurisdictions, when enacting the EIC, was an oversight.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 In fact, while the Governor seizes on just one of the objectives in establishing t he EIC, we note that not only did Congress intend to reduce the disincentive to work caused by the imposition of Social Security taxes on earned income, but it also sought to provide relief for low-income families hurt by rising food and energy prices and to stimulate the economy by funneling funds to persons likely to spend money immediately.}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 See Sorenson}{\insrsid12679053\charrsid15557608 , 475 U.S. at 864, 106 S. Ct. at 1608-09 (citing congressional committee reports, hearings and other legislative materials).}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The fact that Guam does not p ay certain Social Security taxes should not prevent low-income families, who reside on Guam, from being paid the refundable EIC when there is no indication from Congress that, in designating the beneficiaries of this tax program, Guam low-income families were to be excluded.}{\insrsid12679053 \par }{\insrsid4157821\charrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [20]}{\insrsid12679053\charrsid15557608 \tab Moreover, there is ample evidence contradicting the Governor}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s argument, in light of the numerous opportunities that Congress has dealt with the EIC as it relates to Guam.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Congress could have addressed this issue when it passed the Omnibus Territories Act in 1986, or very recently, when it passed the Guam Omnibus Opportunities Act.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Likewise, Congress could have provided for the non-applicability of EIC by modifying the I.R.C. directly, as it did when providing the governors of the possessions of the United States the power to alter ceilings for qualified mortgage bonds.}{ \insrsid15557608 }{\i\insrsid12679053\charrsid15557608 See}{\insrsid12679053\charrsid15557608 48 GCA }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{ \insrsid12679053\charrsid15557608 1421i(h) (adding authority under the I.R.C. in Section 204 of the Act of October 5, 1984, P.L. 98-454).}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 We must assume that Congress knew what it was doing when it implemented the EIC without making it specifically inapplicable to Guam.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The Governor}{\insrsid2175088\charrsid15557608 '}{ \insrsid12679053\charrsid15557608 s contention that Congress}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s failure to address the EIC}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s effects on Guam was mere inadvertence is pure speculation and is not grounded on sound solid evidence either in the language of section 32 itself or its legislative history.}{\insrsid12679053 \par }{\insrsid4157821\charrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [21]}{\insrsid12679053\charrsid15557608 \tab The instant case stands in contrast to }{\i\insrsid12679053\charrsid15557608 Flores v. Guam}{\insrsid12679053\charrsid15557608 , where the Ninth Circuit examined the legislative history of the 1958 amendments to the Organic Act and found in a Senate Report a statement that section 932 of the I.R.C. is to be excluded from the GTIT.}{\insrsid15557608 }{ \i\insrsid12679053\charrsid15557608 See}{\insrsid12679053\charrsid15557608 444 F.2d 284, 287-88 (9th Cir. 1971).}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Accordingly, the Ninth Circuit held that }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 section [932] is simply not a part of the tax law of Guam.}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 See}{\insrsid12679053\charrsid15557608 }{\i\insrsid12679053\charrsid15557608 id}{\insrsid12679053\charrsid15557608 . at 288.}{\insrsid15557608 } {\insrsid12679053\charrsid15557608 The Governor offers no such specific evidence to buttress his claim. Absent any clear indication from Congress, we will not impute to its complete silence on the EIC}{\insrsid2175088\charrsid15557608 '}{ \insrsid12679053\charrsid15557608 s applicability to Guam an intent to exclude our lower-income taxpayers from receiving the benefits of this tax program.}{\insrsid12679053 \par }{\insrsid4157821\charrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [22]}{\insrsid12679053\charrsid15557608 \tab Nor do we agree with the Governor}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s second argument that section 32 is inorganic because it underm ines the government}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s ability to attain self-sufficiency and to control expenditures in financing other government programs and services, pursuant to section 1423j of the Organic Act.} {\cs15\super\insrsid12679053\charrsid15557608 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\super\insrsid12679053 \chftn }{\fs20\insrsid12679053 Section 1423j provides: \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 {\fs20\insrsid12679053 \par }\pard \qj \li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0 {\fs20\insrsid12679053 Appropriations by the Legislature Authorized. (a) Appropriations, except as otherwise provided in this chapter, and except such appropriations as shall be made from time to time by the congress of the United States, shall be made by the legislature. \par (b) I f at the termination of any fiscal year the legislature shall have failed to pass appropriation bills providing for payments of the necessary current expenses of the government and meeting its legal obligations for the ensuing fiscal year, then the severa l sums appropriated in the last appropriation bills for the objects and purposes therein specified, so far as the same may be applicable, shall be deemed to be re-appropriated, item by item. \par }\pard \qj \li720\ri720\sa240\nowidctlpar\faauto\rin720\lin720\itap0 {\fs20\insrsid12679053 (c) All appropriations made prior to August 1, 1950 shall be available to the government of Guam. Organic Act }{\fs20\insrsid12679053 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f38\fs20}}}{\fs20\insrsid12679053 1423j.}}}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Admittedly, the mirror code was implemented with the immediate purpose of relieving the United States Treasury from making direct appropriations to Guam and of making Guam financially self-sufficient.}{\cs15\super\insrsid12679053\charrsid15557608 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\super\insrsid12679053 \chftn }{\fs20\insrsid12679053 In fact, by not appropriating the needed funding to pay for the EIC, Congress remains consistent with its original intent not to make direct appropriations to Guam.}}}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 See Laguana v. Ansell}{ \insrsid12679053\charrsid15557608 , 102 F. Supp. 919, 920-21 (D. Guam 1952); }{\i\insrsid12679053\charrsid15557608 Chaco I,}{\insrsid12679053\charrsid15557608 539 F.2d at 1227-28.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 But Congress established the means in which Guam was to achieve financial self-sufficiency by creating, in section 1421i, }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{ \insrsid12679053\charrsid15557608 a separate integral taxing structure for Guam }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 62 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 mirroring}{ \insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 the provisions of the federal tax code, except for those provision which were incompatible with such a }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 62 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 separate tax}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 structure.}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\cs15\super\insrsid12679053\charrsid15557608 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \cs15\super\insrsid12679053 \chftn }{\fs20\insrsid12679053 In reviewing the legislative history of the 1958 amendments to the Organic Act, the Court noted that the Department of Interior}{\fs20\insrsid2175088 '}{\fs20\insrsid12679053 s materials to the Congress make it clear }{\fs20\insrsid12679053 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f38\fs20}}}{\fs20\insrsid12679053 that the purpose of the amended statute was to give Guam a separate, integral tax system, which would duplicate the United States}{\fs20\insrsid2175088 '}{\fs20\insrsid12679053 tax system in all substantive particulars.}{\fs20\insrsid12679053 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f38\fs20}}}{\fs20\insrsid12679053 }{\i\fs20\insrsid12679053 See }{\fs20\insrsid12679053 395 F.2d at 412. Thus it found that Congress intended that Guam apply the I.R.C., subject to section 1421i(d)(1) }{ \fs20\insrsid12679053 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f38\fs20}}}{\fs20\insrsid12679053 to persons and income within its territory just as the United States applies the [I.R.C.] . . . to persons and income within its territory.}{\fs20\insrsid12679053 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f38\fs20}}}{ \fs20\insrsid12679053 }{\i\fs20\insrsid12679053 See id}{\fs20\insrsid12679053 . at 412.}}}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 Sayre}{\insrsid12679053\charrsid15557608 , 395 F.2d at 410.}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 In }{\i\insrsid12679053\charrsid15557608 Flores}{\insrsid12679053\charrsid15557608 , the Ninth Circuit found the following excerpt of legislative history to be the most authoritative source on congressional intent in enacting section 1421i(d)(1):}{\insrsid12679053 \par }{\insrsid4157821\charrsid15557608 \par }\pard \qj \li1440\ri1440\nowidctlpar\faauto\rin1440\lin1440\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 The specific mention of chapter 2 and section 931 of the 1954 code and of corresponding provisions of the 1939 code from the income-tax laws in force in Guam is not intended to exclude other provisions of the 1954 or 1939 codes from the category of pr ovisions which are manifestly inapplicable or incompatible with the intent of Congress in making the income-tax law of the United States applicable in Guam.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Other provisions of the 1954 and 1939 codes which are manifestly inapplicable or incompatible with that intent (for instance, section 932 of the 1954 code and section 252 of the 1939 code) are also excluded even though not specifically singled out for mention. \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 \par }{\i\insrsid12679053\charrsid15557608 See }{\insrsid12679053\charrsid15557608 444 F.2d at 287.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 It follows that, unless an I.R.C. provision is }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 manifestly inapplicable or incompatible}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f38\fs24}}}{\insrsid12679053\charrsid15557608 with the GTIT, it applies to Guam taxpayers.}{\cs15\super\insrsid12679053\charrsid15557608 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\super\insrsid12679053 \chftn }{\fs20\insrsid12679053 The Ninth Circuit}{\fs20\insrsid2175088 '}{\fs20\insrsid12679053 s recent decision in }{\i\fs20\insrsid12679053 Gumataotao v. JSU, Dir. of Dep}{\i\fs20\insrsid2175088 '}{\i\fs20\insrsid12679053 t of Revenue and Taxation}{\fs20\insrsid12679053 , 2001 WL 21012 (9th Cir. Jan. 10, 2001), reinforces our position. Citing, }{\i\fs20\insrsid12679053 Sayre}{ \fs20\insrsid12679053 , 395 F.2d at 412 and the Third Circuit}{\fs20\insrsid2175088 '}{\fs20\insrsid12679053 s decision in }{\i\fs20\insrsid12679053 Vitco}{\fs20\insrsid12679053 , 560 F.2d 180, 184-85 (3d Cir. 1977), the Court reiterated Congress}{ \fs20\insrsid2175088 '}{\fs20\insrsid12679053 s intent to provide uniform tax treatment for U.S. and Guam taxpayers. }{\i\fs20\insrsid12679053 See}{\fs20\insrsid12679053 2001 WL 21012, at *5. Thus, it rejected the taxpayer}{\fs20\insrsid2175088 '}{ \fs20\insrsid12679053 s argument that Guam was not authorized to tax U.S. bonds. }{\i\fs20\insrsid12679053 See id. }{\fs20\insrsid12679053 }{\fs20\insrsid12679053 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f38\fs20}}}{ \fs20\insrsid12679053 [A]llowing Guam to tax the interest from federal bonds would provide uniformity, whereas disallowing Guam from taxing them would create }{\fs20\insrsid12679053 {\field{\*\fldinst SYMBOL 62 \\f "WP TypographicSymbols" \\s 10}{\fldrslt \f38\fs20}}}{\fs20\insrsid12679053 disparate tax treatment.}{\fs20\insrsid2175088 '}{\fs20\insrsid12679053 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f38\fs20}}}{\fs20\insrsid12679053 }{\i\fs20\insrsid12679053 See id.}{ \fs20\insrsid12679053 It sho uld similarly follow in the instant case that allowing Guam to apply the EIC would provide uniformity, whereas disallowing the EIC would invariably create disparate tax treatment between Guam and U.S. taxpayers. Accordingly, unless Congress expressly ind icates otherwise, the general rule that Guam and U.S. taxpayers are to be afforded uniform tax treatment applies to the refundable EIC. }}}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 See id}{\insrsid12679053\charrsid15557608 ; 48 U.S.C. }{ \insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 1421i(d).}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 What is deemed }{ \insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 manifestly inapplicable or incompatible}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 must be strictly construed within congressional intent of making the income tax laws of the United States applicable in Guam.}{ \cs15\super\insrsid12679053\charrsid15557608 \chftn {\footnote \pard\plain \qj \fi720\li0\ri0\sa240\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs15\super\insrsid12679053 \chftn }{\i\fs20\insrsid12679053 Gumataotao}{\fs20\insrsid12679053 also notes that the Ninth Circuit has never held a provision of the I.R.C. }{\fs20\insrsid12679053 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f38\fs20}}}{\fs20\insrsid12679053 manifestly inapplicable or incompatible}{\fs20\insrsid12679053 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 10}{\fldrslt\f38\fs20}}}{\fs20\insrsid12679053 with the intent of the Income Tax Section, while a cknowledging that only one district court has done so, }{\i\fs20\insrsid12679053 see Bank of Guam v. Chaco}{\fs20\insrsid12679053 , 423 F.Supp. 409, 413 (D. Guam 1976). }{\i\fs20\insrsid12679053 Gumataotao}{\fs20\insrsid12679053 , 2001 WL 21012, at *5.}} }{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 See}{\insrsid12679053\charrsid15557608 539 F.2d at 1227.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The District Court of Guam had occasion to apply this test in }{ \i\insrsid12679053\charrsid15557608 Bank of America, Nat}{\i\insrsid2175088\charrsid15557608 '}{\i\insrsid12679053\charrsid15557608 l Trust and Sav. Ass}{\i\insrsid2175088\charrsid15557608 '}{\i\insrsid12679053\charrsid15557608 n v. Chaco }{ \insrsid12679053\charrsid15557608 (}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\i\insrsid12679053\charrsid15557608 Chaco II}{\i\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 ), where it held that the Foreign Investors Tax Act of 1964 (}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 FITA}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 ), was inapplicable to corporations incorporated in the United States but doing business in Guam.}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 See }{\insrsid12679053\charrsid15557608 423 F.Supp 409, 412 (D. Guam 1976).}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 The District Court examined the legislative history of FITA and found that }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{ \insrsid12679053\charrsid15557608 the very purpose of the Act, i.e., to increase tax revenues, could be severely frustrated}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{ \insrsid12679053\charrsid15557608 if the tax were imposed on the corporate taxpayer.}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 Id}{\insrsid12679053\charrsid15557608 . at 413.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 It reasoned that Congress could not have intended to indirectly benefit Guam at the expense of the United States.}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 See id}{\insrsid12679053\charrsid15557608 . \par }{\b\insrsid4157821 \par }{\b\insrsid12679053\charrsid15557608 [23]}{\insrsid12679053\charrsid15557608 \tab Unlike }{\i\insrsid12679053\charrsid15557608 Chaco II}{\insrsid12679053\charrsid15557608 and the FITA, there is no evidence in the record supporting the Governor}{ \insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s contention that the application of the EIC in Guam would }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{ \insrsid12679053\charrsid15557608 severely frustrate}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 congressional intent in applying the federal income-tax laws to Guam.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 In fact, we find it especially difficult to accept the Governor}{\insrsid2175088\charrsid15557608 '}{ \insrsid12679053\charrsid15557608 s position when the government, from 1990 to 1994, paid the EIC and the Legislature has approved continuing appropriations from the general fund to pay for this refundable credit.}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 According to Ninth Circuit, when determining which I.R.C. provision is }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{ \insrsid12679053\charrsid15557608 manifestly inapplicable or incompatible}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 we must strictly construe the provision within congressional intent to establish a tax system for Guam mirroring the I.R.C.}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 See}{\insrsid12679053\charrsid15557608 539 F.2d at 1227.}{ \insrsid15557608 }{\insrsid12679053\charrsid15557608 We hold therefore that, given the absence of any evidence demonstrating the EIC}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s manifest inapplicability or incompatibility to Congress}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s intent in creating the mirror tax structure of the GTIT, Guam taxpayers are entitled to the EIC as provided in 26 U.S.C. }{ \insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 32.}{\insrsid12679053 \par }{\insrsid4157821\charrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [24]}{\insrsid12679053\charrsid15557608 \tab Following our conclusion that Guam taxpayers are entitled to EIC, we likewise hold that the Director is bound by section 1421i to pay the EIC to eligible Guam taxpayers.}{ \insrsid15557608 }{\insrsid12679053\charrsid15557608 We agree with the Legislature that, unless Guam de-links from the I.R.C., in accordance with the Tax Reform Act of 1986, or unless an I.R.C. provision is deemed }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 manifestly incompatible or inapplicable}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 with congressional intent, Guam tax officials are limited by section 1421i to rule-making authority affecting GTIT collection and enforcement, but may not substantively modify any tax law set forth in the I.R.C.}{\insrsid15557608 }{ \i\insrsid12679053\charrsid15557608 See Koster}{\insrsid12679053\charrsid15557608 , 362 F.2d at 251; }{\i\insrsid12679053\charrsid15557608 see also}{\insrsid12679053\charrsid15557608 539 F.2d at 1227-28 (}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 Government of Guam is powerless to vary the terms of the federal income tax laws as applied to Guam, except as permitted by Congress}{ \insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 ).}{\insrsid12679053 \par }{\insrsid4157821\charrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [25]}{\insrsid12679053\charrsid15557608 \tab The extent of Guam tax official}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s rule-making authority was initially examined in }{ \i\insrsid12679053\charrsid15557608 Koster}{\insrsid12679053\charrsid15557608 .}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 In 1952, Guam tax officials promulgated the following two regulations which deviated from the corresponding provisions in the I.R.C.: (1) defining gross income to exclude income not derived from Guam and that gross income under the I.R.C. includes income from whatever source derived,}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 and (2) allowing only deductions which could be attributed to income derived from Guam.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The government disallowed Koster}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s deductions for business losses in the U.S., and Koster brought suit claiming that the regulations were in violation of the Organic Act}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s mirror code provisions.}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 The Ninth Circuit agreed with Koster and opined that, although under section 1421i(d)(2), tax officials could promulgate rules and regulations, consistent with IRS regulations, but only for GTIT administration or collection of taxes.}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 Koster}{\insrsid12679053\charrsid15557608 , 362 F.2d at 250-51.}{ \insrsid15557608 }{\insrsid12679053\charrsid15557608 The Court rejected the government}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s argument, premised on the explanatory note in the legislative history of the 1958 amendments to the Organic Act, that it was allowed to }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 adapt}{ \insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 the I.R.C., which was }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 designed for a huge and fully developed economy}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}} {\insrsid12679053\charrsid15557608 to suit a }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 small and as yet underdeveloped island territory.}{ \insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid15557608 }{\i\insrsid12679053\charrsid15557608 Id}{\insrsid12679053\charrsid15557608 .}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 The Ninth Circuit reasoned that the excerpt from the legislative history must be construed as follows: \par }\pard \qj \li0\ri720\nowidctlpar\faauto\rin720\lin0\itap0\pararsid4157821 {\insrsid4157821 \par }\pard \qj \fi720\li720\ri720\nowidctlpar\faauto\rin720\lin720\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 The word }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 62 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{ \insrsid12679053\charrsid15557608 adapt}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 must be read in conjunction with the closing words of the sentence in which it appears, viz., }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 62 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 * * * in accordance with the intent and under the terms of section 31.}{\insrsid2175088\charrsid15557608 '}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 Section 31, read as a whole, exhibits an intent to apply to Guam the substantive provisions of the income-tax laws of the United States (with specified exceptions), except where manifestly inapplicable or incompatible with the intent of that section.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Any adaptation which cannot be so justified is not authorized. \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 \par }{\i\insrsid12679053\charrsid15557608 Id}{\insrsid12679053\charrsid15557608 . \par }{\insrsid4157821\charrsid4157821 \par }{\b\insrsid12679053\charrsid15557608 [26]}{\insrsid12679053\charrsid15557608 \tab We read }{\i\insrsid12679053\charrsid15557608 Koster}{\insrsid12679053\charrsid15557608 and the subsequent Ninth Circuit decisions to mean that the enlisted substantive provisions of the I.R.C. in section 1421i are to be applied to Guam without deviation }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 except where manifestly inapplicable or incompatible}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f38\fs24}}}{\insrsid12679053\charrsid15557608 with the intent of section 1421i.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Thus, tax officials may modify the mirror code only where such modification concerns tax administration or collection, or where an enlisted I.R.C. substantive provision is }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 manifestly inapplicable or incompatible}{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{ \insrsid12679053\charrsid15557608 with the intent of section 1421i.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 Our reading of }{\i\insrsid12679053\charrsid15557608 Koster}{\insrsid12679053\charrsid15557608 , in particular, sugges ts that Guam tax officials are powerless to tailor the GTIT to suit the island}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s economic situation, thereby rendering indefensible the Governor}{\insrsid2175088\charrsid15557608 '}{ \insrsid12679053\charrsid15557608 s position that tax officials may adapt the I.R.C. to meet Guam}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s fiscal constraints.}{\insrsid12679053 \par }{\insrsid4157821\charrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [27]}{\insrsid12679053\charrsid15557608 \tab Like }{\i\insrsid12679053\charrsid15557608 Koster}{\insrsid12679053\charrsid15557608 , where t ax officials sought to exclude extra-jurisdictional income and deductions from the meaning of gross income by omitting en entire section of the I.R.C., the Director}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s refusal, through Revenue Ruling 96-001, to pay the refundable EIC to otherwise eligible taxpayers, does not involve the mere administration of the GTIT, but substantively modifies an I.R.C. provision.}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 We therefore hold that Revenue Ruling 96-001 is invalid as a matter of law and tax officials may not continue to rely on it as authority in denying the refundable EIC to otherwise eligible low-income taxpayers.}{ \insrsid15557608 }{\insrsid12679053\charrsid15557608 Accordingly, the Director, pursuant to section 32 of the I.R.C. which applies to Guam through section 1421i, is required to pay the EIC to eligible Guam taxpayers.}{\insrsid12679053 \par }{\insrsid4157821\charrsid15557608 \par }{\b\insrsid12679053\charrsid15557608 [28]}{\insrsid12679053\charrsid15557608 \tab Having concluded that the EIC applies in Guam and that the Director is obligated to pay the EIC to eligible taxpayers, we do not reach the Governor}{ \insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s alternative argument that, if in fact section 32 is inapplicable in Guam, then the Guam EIC, which incorporates section 32 of the I.R.C. as its operative provisions, is inorganic.}{ \insrsid15557608 }{\insrsid12679053\charrsid15557608 We note nevertheless that the Legislature}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s attempts to implement the Guam EIC is consistent with Congress}{ \insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s intent in enacting section 1421i because the U.S. treasury does not make direct appropriations to fund the refundable EIC. \par \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\b\insrsid12679053\charrsid15557608 IV.}{\insrsid12679053\charrsid15557608 \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\b\insrsid4157821 \par }{\b\insrsid12679053\charrsid15557608 [29]}{\insrsid12679053\charrsid15557608 \tab We hold that the District Court of Guam does not have exclusive original jurisdiction over this case because it is not a taxpayer suit.}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 This court has jurisdiction over the Legislature}{\insrsid2175088\charrsid15557608 '}{\insrsid12679053\charrsid15557608 s request for a declaratory judgment pursuant to 7 GCA }{\insrsid12679053\charrsid15557608 {\field{\*\fldinst SYMBOL 39 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f38\fs24}}}{\insrsid12679053\charrsid15557608 4104. \par }{\b\insrsid4157821 \par }{\b\insrsid12679053\charrsid15557608 [30]}{\insrsid12679053\charrsid15557608 \tab We also hold that the substantive provisions of the I.R.C. enlisted in the Organic Act, including the EIC, must be applied in mirrored fashion to Guam.}{\insrsid15557608 } {\insrsid12679053\charrsid15557608 Revenue Ruling 96-001 which purportedly removed the EIC from the GTIT is inorganic as a matter of law because it seeks to modify the substance of the I.R.C.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 The Governor, to whom Congress has delegated the functions of collecting and enforcing the GTIT, is likewise required to enforce and administer the EIC.}{\insrsid15557608 \par \par }\pard \qc \fi-5760\li5760\ri0\nowidctlpar\tx-1440\faauto\rin0\lin5760\itap0\pararsid2056678 {\insrsid12679053\charrsid15557608 PETER C.}{\insrsid15557608 }{\insrsid12679053\charrsid15557608 SIGUENZA, JR.\tab \tab \tab JOHN A.}{\insrsid15557608 }{ \insrsid12679053\charrsid15557608 MANGLONA \par Associate Justice\tab \tab \tab \tab Designated Justice \par }\pard \qj \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid15557608 {\insrsid12679053\charrsid15557608 BENJAMIN J.F. CRUZ \par Chief Justice \par }}