AcToFGUAM ORGANIC (Guam)1956) Taitano,(C.A.9 ofjurisdiction.Phelanv. relielratherthanwant 233F.2dLr7. made TheCourtof Appealsheldthat Guamincometax assessment with announcement simultaneously of deficiencywasinvalidsince90-day hadnotbeengiven,lonesv, Ingling, e .A.9(Guam)1962, noticeofassessment 303F.2d438. UnderBusiness PrivilegeTax of Guamentitlinggovernmenthousing in computing grossincomesubject contraetor, to tax,to deductexpenditures for direct labor and materials.deductionfor direct labor and materials included alllaborandmaterialcostsofcontractor directlyandsolelyincurred in connection with housingprojectandwasnot restrictedto physicallaborat construction siteandto materialsbecomingpermanentpartof thecomplete job,|vtaddoxv. (ajointventure), Black, Raber-Kief C.A.9(Guam)f962,303F.2d 910. TheUnitedStatesCommissioneroflnternalRevenue maynotprescribe anyregulationswhich arenotconsistentwith thefederal taxstatutes orwhich or addarestrictionto a statutewhichisnotjustifiedby thestatutorylanguage theintentof Congress. Smithv,Commissioner Cir., ofInternalRevenue 9 332 , F.2d671,673. Except toovercomemanifestinapplicability, orincompatibility withthegeneralintent ofsection tax 3l oftheOrganicAct, asamended, Gua.m officialsaresimilarlylimited.Governmentaf Guamv.Koster, C.A.9(Guam) 1966,652F.zd648. Califomiaparentcorporationwasnotaforeigncorporation,for purpose of Guamcorporate incometaxlaws,whichwereadaptions taxlaws, offederal andGuamsubsidiary wasnot liablefor withholdingtaxon dividendspaidto (Guam)1966,367F2d. p*enfl AtkinsRtoll(Guan)Ltd.v,Govt,of Guam,C,A.9 127"[[Several Definitions,notablythedefinitionoDomastlchavebeenaltered sincethepromulgationof this Opinion. Theresultwouldbe thesame,but with morerestrictions addedby theIRC.-- Compilerof Lawsl Section31of theOrganicActwasenactedby theCongress primarilyto relievetheUSTreasury of makingdirectappropriations to theGovernment of Guam.AlthoughCongress delegated collection andenforcement functionof the incometax to the Governmentof Guam,the Governmentof Guamis powerless to varythetermsof the.lnternal Codeasappliedto Guam, Revenue BankofAmericav. Chaco, exceptaspermittedby Congress. C.A.Guam1976, 539F.2d1226. (GEDAlaw)did not violate Guamrs rebateandabatement provisions provisionsof this sectionsinceCongressfailed to annul the tax rebate provisions withintheone-yearperiod and,thus,impliedlyapproved thesame. . P,25 SUBCH, 1 " GENERAL PRoVISIoNS
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