Guam § 37103 - Whistleblower Awards to Individuals Who Report

§ 37103. Whistleblower Awards to Individuals Who Report

Underpayments of Taxes Levied Under the Laws of Guam.

(a) The Director of Revenue and Taxation, under

regulations prescribed by the Director, is authorized to pay, from

the monies appropriated to the Department of Revenue and

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Taxation in any fiscal year, such sums as he deems necessary

for:

(1) detecting underpayments of tax levied under the

laws enacted in Guam, or

(2) detecting and bringing to trial and punishment

persons guilty of violating the tax laws enacted in Guam or

conniving at the same, in cases where such expenses are not

otherwise provided for by law. Any amount payable under

the preceding sentence shall be paid from the proceeds of

amounts collected by reason of the information provided,

and any amount so collected shall be available for such

payments.

(b) Awards to Whistleblowers.

(1) If the Director proceeds with any administrative or

judicial action described in Subsection (a) based on

information brought to the Director’s attention by an

individual, such individual shall, subject to Paragraph (2),

receive as an award at least fifteen percent (15%), but not

more than thirty percent (30%), of the collected proceeds

(including penalties, interest, additions to tax, and additional

amounts) resulting from the action (including any related

actions) or from any settlement in response to such action.

The determination of the amount of such award by the Tax

Enforcement Division of the Department of Revenue and

Taxation shall depend upon the extent to which the

individual substantially contributed to such action within

the ranges as prescribed in this Section.

(2) Award in Case of Less Substantial Contribution.

(A) In the event the action described in Paragraph

(1) is one which the Tax Enforcement Division

determines to be based principally on disclosures of

specific allegations (other than information provided

by the individual described in Paragraph (1)) resulting

from a judicial or administrative hearing, from a

governmental report, hearing, audit, or investigation, or

from the news media, the Tax Enforcement Division

may award such sums as it considers appropriate, but

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in no case more than ten percent (10%) of the collected

proceeds (including penalties, interest, additions to tax,

and additional amounts) resulting from the action

(including any related actions) or from any settlement

in response to such action, taking into account the

significance of the individual’s information and the

role of such individual and any legal representative of

such individual in contributing to such action.

(B) Nonapplication of Paragraph Where

Individual is Original Source of Information.

Subparagraph (A) shall not apply if the information

resulting in the initiation of the action described in

Paragraph (1) was originally provided by the individual

described in Paragraph (1).

(3) Reduction in or Denial of Award. If the Tax

Enforcement Division determines that the claim for an

award under Paragraph (1) or (2) is brought by an individual

who planned and initiated the actions that led to the

underpayment of tax or actions described in Subsection

(a)(2), then the Tax Enforcement Division may

appropriately reduce such award. If such individual is

convicted of criminal conduct arising from the role

described in the preceding sentence, the Tax Enforcement

Division shall deny any award.

(4) Appeal of Award Determination. Any

determination regarding an award under Paragraph (1), (2),

or (3) may, within thirty (30) days of such determination, be

appealed to the Unified Judiciary of Guam (and the Unified

Judiciary of Guam shall have jurisdiction with respect to

such matter).

(5) Application of this Subsection. This Subsection

shall apply with respect to any action:

(A) against any taxpayer, but in the case of any

individual, only if such individual’s gross income

exceeds Two Hundred Thousand Dollars ($200,000)

for any taxable year subject to such action, and

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(B) if the tax, penalties, interest, additions to tax,

and additional amounts in dispute exceed Two Million

Dollars ($2,000,000).

(6) Additional rules.

(A) No Contract Necessary. No contract with the

Department of Revenue and Taxation is necessary for

any individual to receive an award under this

Subsection.

(B) Representation. Any individual described in

Paragraph (1) or (2) may be represented by counsel.

(C) Submission of Information. No award may be

made under this Subsection based on information

submitted to the Director unless such information is

submitted under penalty of perjury.

(7) If the government of Guam elects not to proceed

with the action pursuant to § 37203(c) of this Chapter, the

Tax Enforcement Division shall award not less than thirty

percent (30%) of the collected proceeds (including

penalties, interest, additions to tax, and additional amounts)

resulting from the action (including any related actions) or

from any settlement in response to such action. Such person

shall also receive an amount for reasonable expenses which

the court finds to have been necessarily incurred, plus

reasonable attorneys’ fees and costs. All such expenses,

fees, and costs shall be awarded against the defendant.