StarBulletin.com

Kawafuchi to leave job as state tax director in June


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POSTED: Friday, May 21, 2010

State Tax Director Kurt Kawafuchi will be leaving his job June 15, Gov. Linda Lingle's office said yesterday.

“;I have no comment at this time,”; Kawafuchi said when reached by telephone. He said he was cleaning out his office.

;Lingle's spokesman, Russell Pang, said Kawafuchi and the administration were parting ways “;by mutual agreement.”;

Kawafuchi was appointed tax director in 2003 and reappointed in 2007. Before that he supervised the attorney general's Tax Division, which represents the state in tax litigation in federal and state courts.

He was frequently seen in the halls of the Legislature during session, testifying for the administration on various proposals such as the move to end the Act 221 tax credits for high-tech investment and the failed proposal to increase the general excise tax.

Kawafuchi also was in lawmakers' cross hairs because of the administration's move to withhold $275 million in state tax refunds until after the start of the new fiscal year to help balance the state budget. Lingle announced earlier this week that improved tax collections will enable the state to begin releasing some refunds sooner.

Lingle had often praised Kawafuchi for the work his department had made in cracking down on delinquent taxpayers and in bringing the state's tax code into compliance with federal regulations.

“;Kurt has carried out his responsibilities competently and with integrity, coupled with an overriding concern for protecting the public interest,”; Lingle said in August 2008, when Kawafuchi was recognized by the American Institute of Certified Public Accountants as the 2008 Outstanding CPA in state government.

Before joining Lingle's Cabinet, Kawafuchi practiced law at Goodsill Anderson Quinn & Stifel, with a focus on tax law, international and domestic business and estate planning, and representing clients in civil and criminal tax controversies and litigation.

Lingle would have to name an interim replacement to fill the post until a permanent successor can be confirmed by the Senate. Any interim replacement would only serve until December, when Lingle leaves office.