THE Commonwealth Development Authority’s board of directors has offered three options that would grant Tinian Dynasty Hotel & Casino tax incentives.
During the regular board meeting yesterday, CDA Chairman Juan S. Tenorio suggested that the Division of Revenue and Taxation look into the viability of these tax relief proposals.
One consideration is to give Tinian Dynasty a 75 percent tax rebate for the first two years and 50 percent for another three years.
Option two would be to give the company a 50 percent tax rebate for seven years.
The third option is to give Tinian Dynasty a 100 percent tax incentive on all taxes for seven years, and the last option is to give it a 100 percent incentive on anything above the present tax scheme for seven years.
“This is a tough task. We want to help them but we also have the obligation to the government to get things done according to the law,” Tenorio said.
During the meeting, officials from the Division of Revenue and Taxation also offered two options: to grant a 100 percent tax rebate for the first five years or a 100 percent tax rebate for the first four years and 50 percent for the 6th to 10th years.
These, however, were not approved by the board. Revenue and Taxation officials were instead instructed to look into the board’s recommendations.
“We’ll come up with figures based on the options presented by the board. We’ll determine which is most viable, possibly in our meeting next week,” Esther Calvo, the revenue and taxation director said.
CDA is also scheduled to meet with Tinian Dynasty officials next week to discuss tax issues and related concerns including the recent suspension of its two passenger ferries.
The company also owes the Commonwealth Ports Authority over a $1 million in passenger fees.
Last March, Tinian Dynasty applied for a qualifying certificate to avail itself of the tax relief under the Investment Incentive Act of 2000.
