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Did IDS pay its clients’ taxes?
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Posted on Oct 30 2006
The Office of the Public Auditor, which is investigating government exposure in the alleged accounting mess involving the Information Data Services, is now working with the CNMI Revenue and Taxation Division to answer this question.
Specifically, OPA wants to find out if the Guam-based accounting firm paid the taxes of its Saipan-based clients correctly and fully to the CNMI government.
IDS used to handle the payroll processing for the Commonwealth Ports Authority and major hotels in the CNMI. Among these are the Saipan World Resort, Pacific Islands Club, and Hotel Nikko Saipan. The payroll processing includes tax deductibles due the CNMI government.
“I’m just focusing on the figure involving CPA. That’s still ongoing. But we are also concerned about the amounts due the Division of Revenue and Tax, the tax withholdings,” said Sablan in an interview yesterday.
He said the OPA will be working closely with the division on the issue.
“Rev & Tax is looking at what’s owed by the client. It will take care of that aspect. They are looking into it,” he said.
Sablan said his office is not directly investigating IDS since it is under federal investigation.
OPA, however, consults with the concerned federal agency to get the information it needs on IDS.
Sablan said earlier that, based on what he heard from the Federal Bureau of Investigation-Guam, IDS has failed to transfer over $12 million in accounts for its clients in Guam and Saipan.
CPA, for instance, cites over $350,000 withheld amount that was allocated for its employer contribution to the NMI Retirement Fund covering seven pay periods. CPA said that IDS had failed to remit this amount to the Fund in the past few months.
The CPA is working with the CNMI Attorney General’s Office on possible criminal and legal actions against the accounting firm.
