THE Commonwealth Development Authority has promised to make a decision on Tinian Dynasty’s tax incentives application on or before June 26.
“We were informed that CDA board will meet and come up with a decision before June 26, which is the deadline for submitting their recommendation to the governor,” Dynasty’s general manager Tom Liu said in an interview.
Liu’s group made a presentation on Wednesday before CDA officials in connection with its qualifying certificate application.
“We certainly hope that they’d give us the best favorable decision,” Liu said.
He said the hotel is in serious financial condition and needs immediate attention from the government.
“We’re losing money every month. We’re not getting many visitors,” Liu said.
On its own, he said, the hotel has initiated efforts to attract tourists such as the resumption of chartered flights from China.
“Over the last four years, our visitors came in mainly through our own efforts,” he said.
Dynasty said the tax money it could save will be used for marketing and payment of debts to the government, he said.
Since last month, CDA and Division of Revenue and Taxation officials have been holding sessions to discuss Dynasty’s tax incentives application.
The board had suggested four tax incentives options for the Dynasty: A 75 percent tax rebate for the first two years and 50 percent for another three years; a 50 percent tax rebate for seven years; a 100 percent tax incentive on all taxes for seven years; and a 100 percent incentive on anything above the present tax scheme for seven years.
However, according to CDA Chairman Juan S. Tenorio, “We have to weigh things very carefully. We need to think of the government’s interest here while we help the investor.”
Liu said CDA’s favorable action on the hotel’s request for tax relief “will send a positive signal to other investors—it will speak well of the CNMI as a business destination.”
Dynasty filed its qualifying certificate application last March.
The Investment Incentive Act or P.L. 12-80 grants tax relief to tourist-related businesses which have investments in the CNMI three years prior to 2000.
The act authorizes the granting of up to 100 percent tax rebates/abatement for a period of up to 25 years to qualified investors.
