Guam's Speaker of the House has asked the US Attorney's Office and the FBI to investigate potential tobacco tax evasion by a local distributor, amounting to about $US14.5 million over three years.
Benjamin Cruz, a candidate for public auditor and a former chief justice, said MidPac Distributors control about 50 percent of the cigarette market on Guam.
The Pacific Daily News reports the company distributes Philip Morris brand cigarettes on island.
Mr Cruz, in a letter to federal authorities, said assuming other distributors are paying their portion of the cigarette tax, there was a potential underreporting of as much as 30 percent, up to $US1 million per month, possibly attributable to MidPac alone.
He said the possibility of cigarette smuggling should also be investigated.
The president of MidPac, John Calvo, said accusations that his company has been engaged in cigarette smuggling and tax evasion are baseless.
