
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 48USC1421i]

 
              TITLE 48--TERRITORIES AND INSULAR POSSESSIONS
 
                            CHAPTER 8A--GUAM
 
                    SUBCHAPTER I--GENERAL PROVISIONS
 
Sec. 1421i. Income tax


(a) Applicability of Federal laws; separate tax

    The income-tax laws in force in the United States of America and 
those which may hereafter be enacted shall be held to be likewise in 
force in Guam: Provided, That notwithstanding any other provision of 
law, the Legislature of Guam may levy a separate tax on all taxpayers in 
an amount not to exceed 10 per centum of their annual income tax 
obligation to the Government of Guam.

(b) Guam Territorial income tax

    The income-tax laws in force in Guam pursuant to subsection (a) of 
this section shall be deemed to impose a separate Territorial income 
tax, payable to the government of Guam, which tax is designated the 
``Guam Territorial income tax''.

(c) Enforcement of tax

    The administration and enforcement of the Guam Territorial income 
tax shall be performed by or under the supervision of the Governor. Any 
function needful to the administration and enforcement of the income-tax 
laws in force in Guam pursuant to subsection (a) of this section shall 
be performed by any officer or employee of the government of Guam duly 
authorized by the Governor (either directly, or indirectly by one or 
more redelegations of authority) to perform such function.

(d) ``Income-tax laws'' defined; administration and enforcement; rules 
        and regulations

    (1) The income-tax laws in force in Guam pursuant to subsection (a) 
of this section include but are not limited to the following provisions 
of the Internal Revenue Code of 1986, where not manifestly inapplicable 
or incompatible with the intent of this section: Subtitle A [26 U.S.C. 1 
et seq.] (not including chapter 2 [26 U.S.C. 1401 et seq.] and section 
931 [26 U.S.C. 931]); chapters 24 and 25 of subtitle C [26 U.S.C. 3401 
et seq. and 3501 et seq.], with reference to the collection of income 
tax at source on wages; and all provisions of subtitle F [26 U.S.C. 6001 
et seq.] which apply to the income tax, including provisions as to 
crimes, other offenses, and forfeitures contained in chapter 75 [26 
U.S.C. 7201 et seq.]. For the period after 1950 and prior to the 
effective date of the repeal of any provision of the Internal Revenue 
Code of 1939 which corresponds to one or more of those provisions of the 
Internal Revenue Code of 1986 which are included in the income-tax laws 
in force in Guam pursuant to subsection (a) of this section, such 
income-tax laws include but are not limited to such provisions of the 
Internal Revenue Code of 1939.
    (2) The Governor or his delegate shall have the same administrative 
and enforcement powers and remedies with regard to the Guam Territorial 
income tax as the Secretary of the Treasury, and other United States 
officials of the executive branch, have with respect to the United 
States income tax. Needful rules and regulations not inconsistent with 
the regulations prescribed under section 7654(e) of the Internal Revenue 
Code of 1986 [26 U.S.C. 7654(e)] for enforcement of the Guam Territorial 
income tax shall be prescribed by the Governor. The Governor or his 
delegate shall have authority to issue, from time to time, in whole or 
in part, the text of the income-tax laws in force in Guam pursuant to 
subsection (a) of this section.

(e) Substitution of terms

    In applying as the Guam Territorial income tax the income-tax laws 
in force in Guam pursuant to subsection (a) of this section, except 
where it is manifestly otherwise required, the applicable provisions of 
the Internal Revenue Codes of 1986 and 1939, shall be read so as to 
substitute ``Guam'' for ``United States'', ``Governor or his delegate'' 
for ``Secretary or his delegate'', ``Governor or his delegate'' for 
``Commissioner of Internal Revenue'' and ``Collector of Internal 
Revenue'', ``District Court of Guam'' for ``district court'' and with 
other changes in nomenclature and other language, including the omission 
of inapplicable language, where necessary to effect the intent of this 
section.

(f) Criminal offenses; prosecution

    Any act or failure to act with respect to the Guam Territorial 
income tax which constitutes a criminal offense under chapter 75 of 
subtitle F of the Internal Revenue Code of 1986 [26 U.S.C. 7201 et 
seq.], or the corresponding provisions of the Internal Revenue Code of 
1939, as included in the income-tax laws in force in Guam pursuant to 
subsection (a) of this section, shall be an offense against the 
government of Guam and may be prosecuted in the name of the government 
of Guam by the appropriate officers thereof.

(g) Liens

    The government of Guam shall have a lien with respect to the Guam 
Territorial income tax in the same manner and with the same effect, and 
subject to the same conditions, as the United States has a lien with 
respect to the United States income tax. Such lien in respect of the 
Guam Territorial income tax shall be enforceable in the name of and by 
the government of Guam. Where filing of a notice of lien is prescribed 
by the income-tax laws in force in Guam pursuant to subsection (a) of 
this section, such notice shall be filed in the Office of the Clerk of 
the District Court of Guam.

(h) Jurisdiction of District Court; suits for recovery or collection of 
        taxes; payment of judgment

    (1) Notwithstanding any provision of section 1424 of this title or 
any other provision of law to the contrary, the District Court of Guam 
shall have exclusive original jurisdiction over all judicial proceedings 
in Guam, both criminal and civil, regardless of the degree of the 
offense or of the amount involved, with respect to the Guam Territorial 
income tax.
    (2) Suits for the recovery of any Guam Territorial income tax 
alleged to have been erroneously or illegally assessed or collected, or 
of any penalty claimed to have been collected without authority, or of 
any sum alleged to have been excessive or in any manner wrongfully 
collected, under the income-tax laws in force in Guam, pursuant to 
subsection (a) of this section, may, regardless of the amount of claim, 
be maintained against the government of Guam subject to the same 
statutory requirements as are applicable to suits for the recovery of 
such amounts maintained against the United States in the United States 
district courts with respect to the United States income tax. When any 
judgment against the government of Guam under this paragraph has become 
final, the Governor shall order the payment of such judgments out of any 
unencumbered funds in the treasury of Guam.
    (3) Execution shall not issue against the Governor or any officer or 
employee of the government of Guam on a final judgment in any proceeding 
against him for any acts or for the recovery of money exacted by or paid 
to him and subsequently paid into the treasury of Guam, in performing 
his official duties under the income-tax laws in force in Guam pursuant 
to subsection (a) of this section, if the court certifies that--
        (A) probable cause existed; or
        (B) such officer or employee acted under the directions of the 
    Governor or his delegate.

    When such certificate has been issued, the Governor shall order the 
payment of such judgment out of any unencumbered funds in the treasury 
of Guam.
    (4) A civil action for the collection of the Guam Territorial income 
tax, together with fines, penalties, and forfeitures, or for the 
recovery of any erroneous refund of such tax, may be brought in the name 
of and by the government of Guam in the District Court of Guam or in any 
district court of the United States or in any court having the 
jurisdiction of a district court of the United States.
    (5) The jurisdiction conferred upon the District Court of Guam by 
this subsection shall not be subject to transfer to any other court by 
the legislature, notwithstanding section 1424(a) of this title.

(Aug. 1, 1950, ch. 512, Sec. 31, 64 Stat. 392; Pub. L. 85-688, Sec. 1, 
Aug. 20, 1958, 72 Stat. 681; Pub. L. 92-606, Sec. 1(d), Oct. 31, 1972, 
86 Stat. 1497; Pub. L. 95-134, title II, Sec. 203(c), Oct. 15, 1977, 91 
Stat. 1162; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095.)

                       References in Text

    The income tax laws, referred to in subsec. (a), are classified 
generally to Title 26, Internal Revenue Code.
    The Internal Revenue Code of 1986, referred to in subsecs. (d) to 
(f), is classified generally to Title 26.
    The Internal Revenue Code of 1939, referred to in subsecs. (d)(1), 
(e), and (f), was generally repealed by section 7851 of the Internal 
Revenue Code of 1986, Title 26. For table of comparisons of the 1939 
Code to the 1986 Code, see Table I preceding section 1 of Title 26, 
Internal Revenue Code. See also section 7852(b) of Title 26, Internal 
Revenue Code, for provision that references in any other law to a 
provision of the 1939 Code, unless expressly incompatible with the 
intent thereof, shall be deemed a reference to the corresponding 
provision of the 1986 Code.
    Subtitle A (not including chapter 2 and section 931) and chapters 24 
and 25 of subtitle C, referred to in subsec. (d)(1), and subtitle F and 
chapter 75, referred to in subsecs. (d)(1) and (f), mean subtitle A 
(Sec. 1 et seq.), chapter 2 (Sec. 1401 et seq.) of subtitle A, chapters 
24 (Sec. 3401 et seq.) and 25 (Sec. 3501 et seq.) of subtitle C, 
subtitle F (Sec. 6001 et seq.) and chapter 75 (Sec. 7201 et seq.) of 
subtitle F, respectively, of Title 26.


                               Amendments

    1986--Subsecs. (d) to (f). Pub. L. 99-514 substituted ``Internal 
Revenue Code of 1986'' for ``Internal Revenue Code of 1954'' wherever 
appearing.
    1977--Subsec. (a). Pub. L. 95-134 inserted provision that the 
Legislature of Guam may levy a separate tax on taxpayers in an amount 
not to exceed 10 per centum of their annual income tax obligation to the 
Government of Guam.
    1972--Subsec. (d)(2). Pub. L. 92-606 substituted ``Needful rules and 
regulations not inconsistent with the regulations prescribed under 
section 7654(e) of the Internal Revenue Code of 1954'' for ``Needful 
rules and regulations''.
    1958--Subsec. (a). Pub. L. 85-688 designated existing provisions as 
subsec. (a).
    Subsecs. (b) to (h). Pub. L. 85-688 added subsecs. (b) to (h).


                    Effective Date of 1972 Amendment

    Amendment by Pub. L. 92-606 applicable with respect to taxable years 
beginning after Dec. 31, 1972, see section 2 of Pub. L. 92-606, set out 
in part as a note under section 931 of Title 26, Internal Revenue Code.


                             Effective Date

    Section became effective Jan. 1, 1951, by provision of Ex. Ord. No. 
10211 eff. Feb. 6, 1951, 16 F.R. 1167.


 Authority of Guam, American Samoa, and the Northern Mariana Islands To 
                           Enact Revenue Laws

    See section 1271 of Pub. L. 99-514, set out as a note under section 
931 of Title 26, Internal Revenue Code.


 Ratification of Assessments and Collections Made Before August 20, 1958

    Section 2 of Pub. L. 85-688 provided that income taxes assessed 
prior to Aug. 20, 1958, by the authorities of the government of Guam 
pursuant to, or under color of, this section, the collection of such 
taxes, and all acts done to effectuate such assessment and collection 
were legalized, ratified and confirmed as fully, to all intents and 
purposes, as if subsecs. (b) to (h) of this section, had then been in 
full force and effect.


                            Cross References

    All provisions of laws of the United States applicable to assessment 
and collection of taxes imposed by Internal Revenue Code as applicable 
to possessions, see section 7651 of Title 26, Internal Revenue Code.
    Articles, goods, wares, or merchandise going into Guam as exempt 
from payment of any tax imposed by the internal revenue laws of the 
United States, see section 7653 of Title 26.
