GovGuam netted only $136K of $65M in collectible use tax dues

The government of Guam lost $65 million in uncollected use tax due to flawed and deficient process, according to the Office of Public Accountability.

OPA cited deficiencies in its manual processes including: the control, assessment, and recording of incoming cargoes; recording of assessments, exemptions, and collection of use tax; and data interface.

In calendar year 2018, CQA’s Air Cargo Operations received incoming cargoes worth $1.6 billion.

Without considering all exemptible cargoes, the use tax rate of 4 percent, if collected up front, could provide GovGuam approximately $65.5 million of use tax revenues. However, based on existing laws and CQA’s professional judgment, GovGuam only collected $136,000 or 0.2 percent from air cargo in CY 2018.

The deficiencies noted were due to i