DAVID Burger, a certified public accountant of the accounting firm Burger Comer & Associates, is calling for revenue diversification.
In his presentation during the Saipan Chamber of Commerce’s 2nd Annual Economic Forum at Saipan World Resort on May 16, Burger asked, “Why does the CNMI not have investment companies, hedge funds and or pension funds?”
“These types of businesses make money by making investments,” he added. “Investments produce interest, dividends and capital gains. Capital gains come about when you sell an investment for more than you paid for it.”
According to Burger, under the current CNMI business gross revenue tax law, “the investment company would have to pay 5% of the selling price of the investment.”
But not every sale of an investment results in a gain, he said.
“We need to modify our BGRT law to attract this type of industry,” Burger added.
“We can impose BGRT on the net trading gain. We can do this locally,” he said.
Burger likewise called for a more business-friendly environment in the CNMI to attract quality companies and people.
He noted that the filing fee for an annual corporation report is $100.
“The penalty for not filing is $10 per day. Some businesses have been charged thousands of dollars for late filing. This is not business friendly. The penalty should be capped at $100,” Burger said.
He added, “The Department of Commerce should send out notices to non-filers on March 2, since they have the complete database of reports at their disposal.”
Right now, Burger said, to register a business, you need to submit documents to the Department of Commerce.
“To get a business license, you [also] need a zoning clearance and workers’ compensation clearance,” he said.
“It would be more business friendly if all things necessary to get registered and licensed could occur in one location,” Burger added.
The “one-stop” concept for business licensing has been discussed and proposed by government officials since at least the 1990s.
In Nov. 2023, Rep. Thomas John DLC Manglona introduced a bill to establish a permanent “One Stop Shop Business License and Permitting Center” operated by the Department of Commerce.
The bill remains pending in the House.
