No action prior to filing claim for refund
(a) No action or proceeding shall be maintained in any court for the recovery of any internal revenue tax alleged to have been erroneously or illegally assessed or collected, or of any penalty claimed to have been collected without authority, or of any sum alleged to have been excessive or in any manner wrongfully collected, until a claim for refund or credit has been duly filed with the Director, according to the provisions of law in that regard, and the regulations of the Director established in pursuance thereof. Provided, however, that this section shall have no application to the allowance of credit for excise taxes paid on articles, goods, merchandise and commodities exported from the Virgin Islands, as provided in section 42d of this title.
Protest or duress
(b) Such action or proceeding may be maintained whether or not such tax, penalty or sum has been paid under protest or duress.
Action against collection officer a bar
(c) An action against any officer or employee of the Virgin Islands (or former officer or employee) or his personal representative for the recovery of any internal revenue tax alleged to have been erroneously or illegally assessed or collected, or of any penalty claimed to have been collected without authority, or of any sum alleged to have been excessive or in any manner wrongfully collected shall be treated as if the government of the United States Virgin Islands had been a party to such action in applying the doctrine of res judicata in all actions in respect of any internal revenue tax.
Credit treated as overpayment
(d) The credit of an overpayment of any tax in satisfaction of any internal revenue tax liability shall, for the purpose of any action for refund of such tax liability so satisfied, be deemed to be a payment in respect of such tax liability at the time such credit is allowed.
Stay of proceedings
(e) If the Director prior to the hearing of an action brought by a taxpayer in the Superior Court for the recovery of any income tax (or any penalty relating to such taxes) mails to the taxpayer a notice that a deficiency has been determined in respect of the tax, the proceedings in taxpayer's action shall be stayed during the period of time in which the taxpayer may file a petition with the district court, for a redetermination of the asserted deficiency, and for 60 days thereafter. If the taxpayer files a petition with the district court, the Superior Court shall lose jurisdiction of taxpayer's action to whatever extent jurisdiction is acquired by the district court of the subject matter of taxpayer's action for refund. If the taxpayer does not file a petition with the district court for a redetermination of the asserted deficiency, the government of the United States Virgin Islands may counterclaim in the taxpayer's action, or intervene in the event of an action as described in subsection (c) of this section (relating to actions against officers or employees of the Virgin Islands), within the period of the stay of proceedings notwithstanding that the time for such pleading may have otherwise expired. The taxpayer shall have the burden of proof with respect to the issues raised by such counterclaim or intervention of the government of the United States Virgin Islands except as to the issue of whether the taxpayer has been guilty of fraud with intent to evade tax. This subsection shall not apply to an action by a taxpayer which, prior to the date of enactment of this code, is commenced, instituted, or pending in any court of the Virgin Islands for the recovery of any income tax (or any penalty relating to such tax).