The following provisions shall govern the administration of this entire Chapter and shall apply to all taxes levied hereunder.

(a) Tax District. Guam shall comprise one (1) taxing district only and no subdivision thereof shall be made for the purpose of this Chapter.

(b) Tax Commissioner. The Commissioner of Revenue and Taxation of the government of Guam (herein known as the Tax Commissioner) shall have the following duties, powers and authority:

(1) Subordinates. With the approval of the Director of Revenue & Taxation, to designate from among the employees in his division such deputy collectors and internal revenue agents as may be required; provided, however, that the hiring and removal of all such employees shall be done in accordance with the personnel laws and regulations.

(2) Assessment. He shall make all assessments of taxes levied by this Chapter.
(3) Collection. He shall be responsible for the acts of his assistants, the Tax Collector, the Deputy Tax Collector and the Internal Revenue agents and, for the enforcement and collection of all taxes imposed by this Chapter.

(4) Construction of revenue laws. He shall construe the tax and revenue laws, the administration of which are within the scope of his official duties, whenever requested by any officer acting under law, or by any interested person, provided that the Attorney General’s Office shall give him such aid and assistance as he may require.

(5) Enforcement of penalties. He shall see that all penalties provided for in this Chapter are enforced.

(6) Inspection and examination of records. He shall have authority to inspect and examine the records, books of account, bank statements, taxpayer’s copy of Federal income tax return, any other tax return made to the government of Guam, and any other pertinent data having relevancy to the return in question for the purpose of enabling him to obtain the information necessary to enforce the provisions of this Chapter; these powers and duties may be delegated to the Assistant Commissioner, the Tax Collector, the Deputy Tax Collectors and the Internal Revenue agents, or any other person designated by him.

(7) Rules and Regulations. With approval of the Director of Revenue & Taxation, he shall make such rules and regulations as he may deem proper within the scope of the law to carry out the purpose of this Chapter effectually, subject to the approval of the Governor of Guam.

(8) Forms. He shall prescribe by regulation the forms required for the administration and collection of all taxes levied by this Chapter.

(9) Compromises. With the approval of the
Director of Revenue & Taxation, he shall have authority
to compromise claims arising out of any tax law within the scope of his administration; and in the case of any such compromise he shall place on file a statement setting forth:

(A) The amount of the tax assessed or which could have been assessed by or in accordance with law;

(B) The amount of penalties and interest imposed, or which could have been imposed in accordance with law;

(C) The reasons for the compromise; and

(D) The approval of the Director of Revenue
& Taxation.

(10) Agreement for payment. He may enter binding agreements for the installment liquidation of any tax debt due the government of Guam as he may deem to be for the benefit of the government of Guam.

(11) Extension of time. He may approve any reasonable extension of time for the filing of a return or the payment of tax under this Chapter as he may deem necessary.

(12) Refunds and Interest. He shall authorize the Treasurer of Guam, by certification, to make refund of any overpayment of a tax made by taxpayer or any assessment erroneously or illegally made and collected; provided, that such refunds as are herein authorized are to be made out of the funds in the Treasury which were derived from the collection of the tax under which the refund is made; provided, further, that the government of Guam will pay interest at an annual rate established under § 26112 of 11 Guam Code Ann. on all moneys erroneously or illegally assessed and collected, such interest to run from the date of the overpayment. Where a refund of any tax or portion thereof is due a taxpayer and the said taxpayer has any obligation owing to the government of Guam, regardless of how such obligation was accrued,
the refund or such necessary part thereof, shall be applied to the obligation so owing.

(13) Notice and demand. He shall give written notice of tax liability, and make written demand for the payment of the same, whenever any return and remittance required under this Chapter is not made within the time allotted for such return and remittance. Such notice and demand shall be sent by mail, or be delivered by the Tax Commissioner or his representative, to the taxpayer’s dwelling or place of business as listed on his business license, or to his last known address.

(c) Apportionment. If any person is engaged in business both within and without Guam, and if, under the Constitution or laws of the United States, the entire gross income or scope of such business activity of such person cannot be included in the measure of any tax under this Chapter, there shall then be apportioned to Guam and included in the tax base that portion of the gross income or business activity which is derived from or attributable to Guam.

(d) Tax collected declared Guam Funds. The taxes levied, assessed and collected under this Chapter shall become funds of Guam from the moment of collection and shall be subject to all laws, rules and regulations pertaining thereto, and unless specifically provided by law, all such taxes collected shall be covered into the Treasury of Guam as part of the General Fund.

(e) Limitation of time. Except as otherwise provided in this Subsection, the amount of any tax imposed by this Chapter shall be assessed within three (3) years after the return was filed (whether or not such return was filed on or after the date prescribed). A return filed before the last day prescribed by law for the filing thereof shall be considered as filed on such last day. No proceeding in court without assessment for the collection of such tax shall be begun after the expiration of such period.

(1) False return. In the case of a false or fraudulent return with the intent to evade any tax imposed by this Chapter, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time.

(2) Willful attempt to evade tax. In the case of a willful attempt in any manner to defeat or evade any tax imposed by this Chapter, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time.

(3) No return. In the case of failure to file a return, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time.

(4) Extension of time to assess. Where, before the expiration of the time prescribed in Subsection 26102(e) for the assessment of any tax imposed by this Chapter, both the Tax Commissioner and the taxpayer have consented in writing to its assessment after such time, the tax may be assessed at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.

(f) Period of limitation on filing claim for refund. Claim for credit or refund of an overpayment of any tax imposed by this Chapter in respect of which tax the taxpayer is required to file a return shall be filed by the taxpayer within three (3) years from the time the return was required to be filed (determined without regard to any extension of time) or two (2) years from the time the tax was paid, whichever of such periods expires the later, or if no return was filed by the taxpayer, within two (2) years from the time the tax was paid. Provided, that any claim for credit or refund of a tax imposed by this Chapter which accrued prior to the effective date of this Subsection shall be filed by the taxpayer within three (3) years from the time the return was required to be filed determined without regard to any extension of time and two(2) years from the time the tax was paid, whichever of such periods expires the later, or if no return was filed by the taxpayer, within two (2) years from the time the tax was paid; or within three (3) months after the effective date of this Subsection, whichever of such periods expires the later; provided, further, that no claim shall be filed for credit or refund of a tax imposed by this Chapter which was paid more than four (4) years prior to the effective date of this Subsection.

(g) Claim for drawback; limitation. Any claim for drawback authorized under this Chapter shall not be filed earlier than the twentieth (20th) day of the month following the month in which the transaction or event occurred for which a drawback is authorized, and shall not be filed later than one (1) year after the date of such transaction or event.

(h) Revenue Ruling. The Tax Commissioner shall assess a fee of Five Hundred Dollars ($500.00) for each request for a revenue ruling on the tax laws of Guam except when a different fee is identified and assessed by the Internal Revenue Code.

SOURCE: GC § 19501. Subsection (b) (12) amended by P.L. 13-104:2 (Nov. 24, 1975) and P.L. 18-030:27 (Feb. 19, 1986). Subsection (h) added by P.L. 29-002:V:I:18 (May 18, 2007).

2017 NOTE: References to “”Territory”” and “”territorial”” removed pursuant to 1 Guam Code Ann. § 420.

NOTE: P.L. 13-104:2 incorrectly cited § 19500.0212 as the section to be amended, rather than § 19501.0212.