Rev and Tax meets with senators for third oversight hearing - News: On Air. Online. On Demand.

Rev and Tax meets with senators for third oversight hearing

Posted: Updated:


GUAM - During this morning's oversight hearing with Rev and Tax, it was revealed that from the last oversight hearing in March to May this year, there's been an increase of 12.4 million dollars in GRT accounts receivable.

DRT director John Camacho says this is as a result of being behind in processing GRT.
Camacho explained, "What's happening right now, as we assess the tax it doesn't interface with the payments made through Treasurer of Guam and becomes a receivable until such time interface come into play, then those receivables will go down.

Camacho adds the figures will continue to accumulate until they're reconciled. Just as they did in the last oversight hearing, Rev and Tax informed lawmakers this continues to be an issue because its point of sales system has been down since 2011. The total accounts receivable stands at 120 million dollars.
"But we still have a lot of work to do try to get those receivables down" Camacho stressed.
The director also explained however, that interfacing will occur once Rev and Tax implements software known as the transaction processing system or TPS. Senator Michael San Nicolas however says he's more concerned that there isn't a stop-gap measure or plan b for when systems go down.
"Because for the numbers to just keep adding up like this, and for us not to know what's outstanding out there it makes it very difficult for us to get a true picture of how affective we are in collecting the money we're supposed to be collected" the senator chimed.
Camacho says in the meantime Rev and Tax is doing a lot of manual work and has finished processing 2011 GRT returns and halfway through 2012's.
"We just ask to be patient and in the long run it will be resolved" Camacho expressed assuredly.
This however is the third oversight hearing and San Nicolas asked what DRT needs to make the changes whether its more manpower or resources. He notes while progress has been made such as reducing outstanding receivables for 1040's by 32-thousand dollars, more needs to be done.
"Because if we're constantly increasing the collections, that means we're going to constantly have items falling out of the statute of limitations and that means our people's money is not going to get collected on time" San Nicolas argued.
The oversight lasted two hours and discussed other issues such as collecting from those businesses with outstanding taxes before they renew their business license. It was noted over 20-thousand business are in this situation and have since been sent letters to make good on their payment or opt for a payment plan. San Nicolas meanwhile hopes to have another oversight every month. 


Powered by Frankly