THE Commonwealth Development Authority favors giving tax breaks to Tinian Dynasty Hotel & Casino.
In a decision submitted yesterday to the Office of the Governor, CDA approved a 100 percent tax abatement for Dynasty’s business gross revenue and 50 percent bar tax for the first three years.
For the 4th to 7th years, tax abatement will be 50 percent for both taxes.
For the 8th to 10th years, the tax abatement will be lowered to 30 percent.
CDA Chairman Juan S. Tenorio said the decision was “very fair enough” for Dynasty.
“We want to help them recover. We believe that the first three years is very critical so we came up with the formula,” Tenorio told Variety.
Dynasty General Manager Tom Liu could not be reached for his reaction as of press time.
CDA’s decision is still subject to Gov. Juan N. Babauta’s approval. He has 45 days to act on it.
In an earlier interview, Liu said he was hoping that CDA would “give us the best favorable decision.”
He said the saved tax money would be used for marketing and payment of debts to the government.
Liu had said CDA’s favorable action would “send a positive signal to other investors.”
Dynasty filed its qualifying certificate application last March.
Investment Incentive Act or P.L. 12-80 grants tax incentives to tourist-related businesses that invested 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.
