Thursday, July 31, 2014

VIDEO: OPA - "High Probability" GovGuam Is Losing Millions Because Rev & Tax's "Scanner" Is Broken

Guam News - Guam News

Guam - An audit released Tuesday by the Office of Public Accountability has revealed that the Department of Revenue and Taxation has has not processed Gross Receipt Tax forms and assessed taxes and exemptions since March 2011.

According to the audit, the reason is because of a breakdown in DRT’s system and optical image scanner, along with the expiration and termination of the service agreement with the contracted vendor. 

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READ the OPA's Highlights of the Gross Receipts Tax Audit HERE

As a result, the audit states, GovGuam is at risk of losing revenue due to possible non-reporting and under reporting of GRT.  And according to the audit, Rev & Tax has no system in place to track the number and amount of exemptions being claimed by Guam taxpayers and therefore the financial impact on GovGuam revenue is unknown.

Highlights:

* GRT and exemption data is incomplete, possibly unreliable, and lacking necessary information for management and elected leaders to make sound decisions related to GRT.

* Without DRT effectively monitoring, reporting, and collecting GRT and reviewing exemptions claimed, there is no assurance that all GRT revenues are being collected and reported completely and accurately.

* The issue of DRT’s inability to process and assess gross receipts taxes is an urgent matter that must be addressed by management and elected leaders. 

* As stated in 11 GCA § 26102 (e), the limitation of time to assess these taxes is three (3) years after the return is filed. 

READ FULL audit report HERE

 

 

 

 

 

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