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Last updateWed, 16 Oct 2019 12am







    Monday, October 14, 2019-7:23:34A.M.






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IPI, Finance tax dispute may end soon

THE tax dispute between the Department of Finance and Imperial Pacific International may end soon, Variety was told on Monday.

Over the last several months, IPI and the government have been trying to settle the issue of whether the casino operator has to pay tax for the revenue it didn’t earn due to gaming losses.

David DLG Atalig

Sources told Variety that a determination was already made a couple of weeks ago.

Asked for comment, Finance Secretary David DLG Atalig said that because of taxpayer disclosure law, “I cannot share this information with the public.”

But he said that when a taxpayer amends his tax return, the compliance section of the Division of Revenue and Taxation will review it and either accept or deny the amendment.

If the taxpayer disagrees with Revenue and Taxation’s decision, he can ask for a hearing.

Once a hearing is conducted, the hearing officer will issue a decision within a period of time.

If the hearing officer denies the request for amendment, the taxpayer must pay the full tax amount owed, including penalties and interest, Atalig said.

But if the amendment is approved, then the taxpayer’s account will be credited or debited depending on the amendment.

Atalig said “usually when a determination is made both parties have about 30 days to comply.”

Asked how much the CNMI stands to collect from IPI if its request for a tax write-off is denied, Atalig declined to comment.

House Minority Leader Edwin Propst has said that IPI paid about $21,000 only in business gross revenue tax from January to July of 2019.

In June 2019, IPI said it had contributed to the CNMI government over $150 million in business gross revenue taxes since opening business in 2015.

IPI also believes it may have overpaid in its BGRT. “IPI’s tax team, consisting of its chief financial officer, CNMI accountant and CNMI tax attorney, has been working with the Department of Finance in an effort to resolve this issue,” the casino investor said.