Is the Government of Guam losing out on millions of dollars in unpaid business privilege taxes from off-island contractors who are making big money off the military buildup? That was the focus of a legislative oversight hearing today on the potentially huge amount of tax revenue that could be leaking from the system.

The Office of the Public Auditor first raised the issue in a report last month in which it estimates at least $10 million in taxes has gone unpaid. But there could be alot more, as keeping tabs on tax filings and payments by all these companies has been challenging for the Department of Revenue & Taxation.

Public Auditor B.J. Cruz suggests it might be time for the agency to send a message, "I believe if you do one audit its going to scare everybody into doing something. I mean all the rest of them."

Cruz suggests offering a 90 day-amnesty period for contractors to come clean or Rev & Tax will step up enforcement. "During this 90 days, if you come in with your returns in the last three or five years, we'll talk about whether or not we'll waive penalties and interest. If we do an audit and find that you have been fraudulent in your filing then not only will you not get a waiver on your penalty and your interest, but you'll be made to pay immediately and maybe not just that but criminal action," he said.

Cruz has also brought up the admiral's suggestion of setting up a meeting between Rev & Tax director Dafne Shimizu and the Defense Finance Accounting Service, which tracks Guam's military contracts.

The hearing was cut short though as chairman Senator Roy Quinata decided they should reschedule until April 19. That's because Shimizu will be busy through the 18th - the deadline to file income taxes.

When they reconvene they're also scheduled to discuss another audit on alcohol and tobacco tax arrears.