After a brief hiatus from trying to collect taxes from contractors doing business on Guam’s military bases Department of Revenue and Taxation agents will again focus on trying to capture the potentially significant government revenue.
Joe Rios Jr. deputy tax commissioner for the Department of Revenue and Taxation told the Journal "What we plan on doing maybe one to three months from now will be to visit the military and to inform the military that whenever they have these military contracts that they inform these companies that they do have to file with us [Guam’s Department of Revenue and Taxation ] their organizational documents they have to register with us and take care of their tax responsibilities such as GRT returns and what we call form 1120 Fs or corporate income tax returns."
Rios said revenue agents and revenue officers completed Internal Revenue Service training and are now going through on-the-job training. "Employees received basic training and what we call OIC or "˜Offer in Compromise’ and bankruptcy collection training." He said once the on-the -job training is completed the branch will move forward with working with the military.
According to Rios the employees did work to ensure the government of Guam did not lose potential revenues from contractors working on Guam’s military bases but needed to receive the IRS training. He said "it’s been years" since Department of Revenue and Taxation employees in that division had received any form of training. "Here at Revenue and Tax you need the training in order for you to perform your work. You can get training through work experience but you would not be as effective unless you received IRS training."
Rios said he could not provide the Journal with statistics of the amount of companies who have filed corporate income tax returns. "Companies have not filed their 1120s yet. We do not have that in our system. Although the time to file has passed companies have filed for extensions " he said.
Rios said the Department of Revenue and Taxation will inform businesses not domiciled here "If you are doing business here on Guam you are required to file and pay tax here on Guam. Now failure to do that will result in penalties." He said "If you plan on doing business here on Guam come and visit the department of Revenue and Tax. If you want to come and visit me that’s fine I will share with them their tax responsibilities on Guam."
Rios told the Journal "Most companies don’t know that they are supposed to be paying withholding tax to Guam. They need to pay that here instead of sending it back to where they are from." MBJ