COMMONWEALTH Development Authority officials have not decided on Tinian Dynasty Hotel & Casino’s request for tax relief.
CDA board and key officials, together with Division of Revenue and Taxation staff, have been holding weekly sessions since May 28 to discuss Dynasty’s tax incentives application.
“There’s no decision there yet. There should be a sound, well-studied plan before a decision can be made,” CDA Chairman Juan S. Tenorio said in an interview.
He said Dynasty officials should be present in next week’s hearing. “We have to hear them personally,” he said.
Earlier, the board suggested four options for the possible granting of tax incentives to 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.
Revenue and Taxation is currently looking into the viability of the tax relief proposals.
Dynasty, a major investor on Tinian, is encountering financial difficulties and is faced with several lawsuits.
“We have to weigh things,” Tenorio said. “We can’t just grant tax incentives. We need to think of the government’s interest also,” he said.
Dynasty filed its qualifying certificate application last March.
The Investment Incentive Act or P.L. 12-80 grants tourist-related businesses that invested in CNMI three years prior to 2000 some tax relief.
The act authorizes the granting of up to 100 percent tax rebates/abatement for a period of up to 25 years to qualified investors.
