The U.S. Department of the Interior’s Office of Inspector General has criticized the Republic of Palau for its woefully inadequate tax enforcement that may have missed $50.3 million in unreported gross revenues and related taxes of $2 million during tax years 1988 to 1991. According to the report, the quantity and quality of tax audits undertaken by Palau’s Division of Revenue and Taxation were not sufficient. For instance, the Palau Revenue Agency did not control the use of its limited audit resources…[more]