Guam – The Office of Public Accountability [OPA] reports that the Department of Administration [DOA] “did not procedurally comply with directly depositing the set-aside amounts into the Trust Fund .. to pay tax refunds.”
As a result, the OPA reports, despite the $198 million dollars in tax refund payments paid out this month, $127.6 million in refunds is still owed to island taxpayers and that liability is growing.
“We calculated that from October 1 2010 to September 30 2011, $93.1 million should have been deposited in the Trust Fund, but “contrary to the laws intent, $41 million was used to fund government operations.”
The audit is entitled “Government of Guam Income Tax Refund Efficient Payment Trust Fund”.
The audit, released today [Monday], also pointed out that GovGuam over estimated revenues by nearly $38 million in Fiscal Year 2011 noting once again that “overestimating anticipated revenues and expending beyond appropriations continue to fuel GovGuam’s penchant to live beyond its means.”
“So long as GovGuam continues to spend more than it makes and overestimate what it thinks it will collect, operations will continue to need subsidies and tax refund liabilities will continue to grow.”