OPA issues Audit on GRT

by Sabrina Salas Matanane

Guam - According to an audit released today by the Office of Public Accountability, the Government of Guam is at risk of losing revenue due to possible non-reporting and under reporting of Gross Receipts Taxes.  According to the report the Department of Revenue and Taxation has not processed GRT forms and assessed taxes and exemptions for the past two years because of a breakdown in the agency's system and optical image scanner, along with the expiration/termination of the service agreement with the contracted vendor. The OPA finds that as a result of these problems the financial impact on GovGuam revenue is unknown.

The OPA is recommending the Governor, the Legislature and the Department of Administration:

(1)  Establish a tax administration task force to develop an action plan for revitalizing DRT and ensuring complete filing and payment of all taxes due to Guam.

(2)   Establish a financial management task force to develop an action plan for the acquisition of updated financial management systems at both DRT and DOA.

(3)   Establish and meet a target date to fully transition to e-filing of GRT taxes and other related taxes.

The OPA says Guam tax collection problems are not new and have been in existence for over twenty years, "By failing to address long standing tax collection deficiencies, GovGuam has allowed its tax system to fall into disrepair and has suffered tax revenue losses estimated in the millions of dollars annually," the report stated.