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 COL1172018 CH. 36 FALSE CLAIMS AND WHISTLEBLOWER ACT 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 COL1172018 CH. 36 FALSE CLAIMS AND WHISTLEBLOWER ACT 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 COL1172018 CH. 36 FALSE CLAIMS AND WHISTLEBLOWER ACT

(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.