28 Dec 2017

Guam loses out on millions of dollars in taxes

2:14 pm on 28 December 2017

An audit report released this week in Guam has revealed tax exemptions between 2014 and 2016 amounted to $US210 million in lost government revenue.

The report from the Office of Public Accountability shows the revenue lost from granting Gross Receipts Tax exemptions was over a three year period.

The Guam Daily Post reports the office is recommending the government review its policy on exemptions and measure how well its moving towards achieving Guam's social and economic goals.

The report shows that between 2014 and 2016 over 800 taxpayers claimed the exemptions worth a combined sales value of more than US$5 billion (5.3 billion).

It said given the 4 percent tax rate, the government has been foregoing, on average, more than US$70 million (70.2 million) a year for the three year period.