Guam - Guam Shipyard, already in trouble with the Port of Guam,  has a $4.2 million dollar problem with Rev & Tax.

The privately owned shipyard is facing a tax rekoning after its original QC was denied because former Governor Carl Gutierrez made changes to it, which were highly beneficial to the shipyard, but not authorized, according to an opinion from the Guam Attorney General.

The Department of Rev & Tax filed the $4.2 million dollar lien against Guam Industrial Services, doing business as Guam Shipyard.  The lien seeks to collect un-paid taxes from 2005, 2006 and 2007.  The total amount owed is more than $4.2 million dollars.

The Shipyard might not have faced that much in taxes if its original Qualifying Certificate had not been altered, after it had been approved by all the parties involved. It was altered by then Governor Carl Gutierrez.

As PNC News reported Monday,  Guam Attorney General Alicia Limtiaco issued an opinion, at GEDA's request, concluding that the former Governor had no authority to make changes to the original QC after it had been approved back in 2003.

The original QC provided a generous tax reduction of 50% to the Shipyard, nullified now by the AG's opinion that the alterations were unauthorized.

What were the changes that former Governor Gutierrez made to the Guam Shipyard's original QC?

In response to a Freedom of Information request filed by PNC News GEDA provided the altered QC showing where the former Governor crossed out items and intialed the changes, changes that are highly favorable to the Guam Shipyard.

Among them, reducing the required number of full time employees from 250 to 150; crossing out a proposed rent increase of 7-thousand dollars and allowing the Shipyard rent to remain at 8-thousand; and where it once said GEDA will not have to reimburse the Corporation 1.3 million Guiterrez crossed out the word "not" and initialed it.

Rev & Tax has declined to discuss whether the Shipyard has paid the past due amount because they are barred from discussing taxpayer information.

Guam Shipyard this week is in the process now of loading the remaining cargo from Watts Constructors under the supervision of the Port of Guam,  after it was revealed that Watts had by-passed the Port of Guam and violated Guam law,  by loading the first part of its cargo in August at the Guam Shipyard.

Written by :

Kevin Kerrigan

 

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