Guam News - Guam News
Guam - Vice-Speaker B.J. Cruz is calling on the public auditor to launch a review of the qualifying certificate or Q.C. program.
The program allows major tax breaks for companies to promote new industries and create new jobs.
Senator Cruz says he was shocked to see the list of companies with QC's which shows that 7 of the 25 QC holders are non-compliant, one of them has been non-compliant since 2005. And 2 of the 7 have had their QCs revoked, while another QC has expired.
Dim lights Embed Embed this video on your site
“My question that I wanted the auditor to answer is during those periods where they were non-compliant did they still take advantage of all the tax rebates if they have should we not try to recoup those taxes since they were not compliant with the agreement,” asked Vice-Speaker Cruz adding, "When I looked at the list of the 25 11 of them are insurance companies Take Care has three of them three of the eleven are Takecare's they total eleven what kind of insurance are they supposed to be for?"
Cruz has written to Public Auditor Doris Flores-Brooks asking her to conduct an audit of the companies that get QCs.
Vice-Speaker Cruz says that these Q.C.'s were given to insurance companies in order to create a captive insurance industry on Guam which was touted at one time as the next big thing for the island economy. Cruz suggests that these tax breaks could be costing the island tens of millions of dollars.
|< Prev||Next >|