Tax Enforcement Division
The Tax Enforcement Division (TED) is the enforcement arm of the Department of Revenue and Taxation and is in constant contact with the tax paying public. This division enforces the Tax Laws of Guam, which include the Guam Territorial Income Tax, Business Privilege Tax, Use Tax and any other taxes delegated for enforcement. TED is comprised of three operational branches organized as the Collection Branch, Examination Branch and the Criminal Investigation Branch. Each function is separate yet interrelated so as to instill voluntary compliance with the tax laws. They must make continued effort to effectively administer and collect while affording the people of Guam the best service possible while maintaining fairness to all.
|Collection Branch||Collection Branch has broad enforcement powers to ensure that all outstanding local business privilege taxes and Federal income and withholding tax liabilities are settled and collected in a fair and expeditious manner. The branch is empowered to offer taxpayer accounts short-term installment agreements or other arrangements inclusive if interest and penalties, and where appropriate serve liens, levies and warrants to execute the prompt collection of taxes or property. The branch also ensures taxpayers are in full compliance of the Guam Territorial Income Tax Laws. The branch works in coordination with other tax enforcement branches of the Department and prides itself of the professionalism when dealing with the taxpaying public. The branch accounts for all its collection referrals and activities and submits aging reports to management on a weekly and monthly or on an as-needed basis. The branch works diligently to ensure that taxpayers comply with the tax laws and pay taxes to the Government of Guam when they are due.|
|Examination Branch||Examination Branch examines tax returns of individuals, exempt
organizations, partnerships, corporations, and other business-related
entities to ensure compliance with the Guam Territorial Income
Tax (GTIT) laws and the Guam Code Annotated. The branch promotes
an understanding of the Guam tax laws and their tax responsibilities
to the taxpayers.
Examination makes certain preliminary cursory checks of every return filed; it selects returns for audit based on various criteria. If your return is selected for audit, you can expect the following from the examiner: The examiner will protect your rights as a taxpayer throughout your contact with them. Except as authorized by law, the Examiner or DRT personnel will not disclose any information given by you. The examiner should treat you, in a professional, fair, and courteous manner. You may represent yourself, or with the proper written authorization, have someone represent you, or you can have someone accompany you during any phase of the examination.
Examination cases can be settled informally (agree to audit report) or through civil litigation (unagreed). If you disagree with any of the examiner’s findings, you have the right to ask the appeals office to review your case or you may ask a court to review your case.
|Criminal Investigation Branch||Criminal Investigation Branch (CIB) is an integral part of the Tax Enforcement Division. CIB is tasked with investigating criminal violations of the Guam Territorial Income Tax (GTIT) laws, the Guam Business Privilege Tax laws, and other related matters. The Tax Investigators are also called Special Agents since they have Peace Officer status under Guam law and the GTIT laws and are authorized to carry firearms during the course of the duties. CIB investigates cases such as willful failure to file returns or pay taxes, tax evasion, fraud and false statements, and internal violations. Based on their findings, the investigator prepares a Special Agent Report and recommends prosecution for those violations. CIB cases are generally prosecuted in the District Court of Guam and are treated as federal cases. Upon conviction, incarceration and/or fines are imposed.|
The long-term goal of the Tax Enforcement Division is to effectively enforce the provisions of the Guam Territorial Income Tax laws and Title 11 of the Guam code annotated by instilling voluntary compliance. To attain this goal, aggressive collection efforts to reduce tax receivables have been instituted, industry and professional audits are being identified and initiated, and fraud and non-filer cases are aggressively pursued to create more public awareness.