Cruz: DoD Not Doing Enough To Ensure Contractors Pay Guam Taxes
Monday, 08 February 2010
Guam - Vice Speaker B.J. Cruz says a provision in the National Defense Authorization Act to assist Guam in Buildup tax collections is not enough.
In a release, Cruz says he is responding to Guam Delegate Madeleine Bordallo’s assurances that the provision will provide the help needed to GovGuam.
The release states that the Speaker received a letter from Bordallo assuring him that the Department of Defense is required to report on the steps that the Department of Defense is taking to ensure that contractors performing work on Guam comply with local tax and licensing requirements.
The Vice Speaker's release states that Bordallo was responding to Cruz’s request that she act on the matter.
However Cruz's response to Bordallo is:
“The report does not require the Department of Defense to cooperate with local officials nor to adhere to any specific federal requirement to ensure its contractors are paying Guam’s federally mirrored income taxes.”
The Vice SPeaker also states: “In my letter, I specifically asked that you secure language requiring each construction contract to designate Guam as the situs and that all associated income be designated possession source income, without any special exemption. Additionally, I asked that DoD be specifically required to cooperate with tax officials on Guam."
Written by : News Release