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Chamber: Systematic audit of CNMI businesses better
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Posted on Apr 25 2002
The Saipan Chamber of Commerce called for the infusion of additional money to the Department of Finance to fund the employment of a professional service provider that would do the auditing of all CNMI businesses.
This statement was issued by the Chamber in reaction to House Bill 13-056 or the Cash Register Act of 2002. The business group also recommended that stiffer penalties be meted out against violators.
In a letter to Rep. Andrew Salas, Chamber President Richard A. Pierce said the organization’s Government Relations Committee suggested that the proposed measure should not limit the authority to only mechanized forms of sales transactions.
“Our recommendation would be to title this bill “The Sales Act of 2002″ that would not limit the authority of the act to only mechanized forms of sales transactions but would encompass businesses that support their daily transactions with other satisfactory forms of receipts,” said Pierce.
He said it is also better to ensure that all businesses have adequate records to support revenues that are subject to Business Gross Receipts Tax.
“GREL believes that the intent to report proper BGRT would be further strengthened, if there were systematic comprehensive audits conducted on a regular basis,” Pierce explained.
The Chamber also urged the Legislature to allocate necessary funding to the finance department to employ, train or contact professional service to effectively perform complete audits and to allocate funds derived from penalties to finance the compliance audit program.
The measure further proposed that violators or businesses found to have one or several mechanisms not in compliance shall be issued a notice of violation. First offense will be meted out with $1,000.00 fine; second offense will be penalized with $1,500.00 fine; and third offense will be $2,500.00 fine, and a revocation of their business license for up to one (1) year.
