A QC provides tax breaks to its beneficiaries.
Of the 13 investors on CDA’s list, only eight, including the Hong Kong Entertainment Investment Limited which runs the Tinian Dynasty Hotel and Casino, continue to benefit from the program.
Some of the QCs became inactive as early as 2005 due to various reasons.
SEPC Spring Water Inc. on Rota, a $1.6 million investment project, did not materialize.
Its QC, approved by CDA in 2002, would have provided the company with 100 percent excise tax abatement and up to 100 percent business gross revenue tax rebate.
Asia Pacific Hotel, which operates the Fiesta Resort & Spa, did not accept the QC because it did not like some of its conditions.
Saipan Portopia Hotel Corp., which operates the Hyatt Regency Saipan, also did not agree with certain conditions of its QC.
The company that received 100 percent abatement from excise tax and developer infrastructure, as well as business gross revenue tax rebate, asked the administration not to sign the QC.
SNM Corp., which used to operate Rota Resort & Country Club, surrendered its QC in Jan. 2005 due to change of management.
The new management, according to CDA, has yet to apply for a QC.
World Corporation, that owns Saipan World Resort, also has an inactive QC for its $14.7 million investment.
The company surrendered its QC in May 2005.
Besides Hong Kong Entertainment, the other beneficiaries that still have active QCs include Saipan Laulau Development, which runs Laolao Bay Golf Resort; Bridge Capital; SandCastle Saipan; the Hard Rock Café; WDI Saipan Inc., which manages Tony Roma’s and Capriccioca; and We Manage Calls Inc.
