The House leadership, he added, may look into the possibility of repealing the law that provides incentives to big businesses through the issuance of qualifying certificates, or QCs.
Noting that the House’s three revenue generating measures are being opposed right away, Tenorio said it seems that nobody wants to pay taxes anymore.
But he said the CNMI government can no longer allow businesses to “get away from their tax obligations.”
The government might as well stop issuing qualifying certificates, he added.
The qualifying certificate entitles businesses to tax breaks.
Currently, there are nine active beneficiaries of the QC issued by the Commonwealth Development Authority.
The one with the biggest investment is Hongkong Entertainment Investment Limited which runs the Tinian Dynasty Hotel & Casino.
With an investment of $135.3 million, Tinian Dynasty received exemption from alcoholic and business gross revenue taxes.
The other businesses enjoying QC benefits are Sand Castle Saipan which has an investment of $1.5 million; Hard Rock Café, $4.7 million; Tony Roma’s and Cappricciosa $1 million; Saipan World Resort, $25.5 million; We Manage Calls Inc., $2 million; Bridge Capital LLC, $12.2 million; Laolao Bay Golf Resort $54.1 million; and PTI Services Inc., $3.2 million.
Tenorio said these businesses will not be affected even if the QC law is repealed.
The repeal will target new investments, he added.
Rep. Eliceo D. Cabrera, R-Saipan, in a separate interview said he agrees that the QC should be stopped.
He noted that some investors did not bring in the entire investment amount they promised when still applying for a QC.
//
