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FINANCE FILES TAX LIEN VS IPI
IPI allegedly fails to pay $9.4M tax
The Division of Revenue and Taxation of the Department of Finance filed yesterday a tax lien against Imperial Pacific International (CNMI) LLC in federal court for allegedly failing to pay $9,416,887 in Business Gross Revenue Tax for tax period in 2017 to 2019.
As press time yesterday, Saipan Tribune was still awaiting IPI’s comments.
According to the notice of tax lien filed by Richard Santos, Revenue and Taxation Collection & Remittance Branch manager, this liability remains unpaid despite a demand for payment.
“Therefore, there is a lien in favor of the Commonwealth of the Northern Mariana Islands on all property and rights to property belonging to the taxpayer for the amount of these taxes and any additional penalties, interest, and costs that may accrue,” said Santos in the notice.
According to the notice, for the tax period that ended on Dec. 31, 2017, the unpaid balance is $3,289,333. For the tax period that ended on Dec. 31, 2018, the unpaid balance is $2,064,036. For the tax period that ended on Dec. 31, 2019, the unpaid balance is $2,013,024 and $2,050,462. For the tax period that ended on April 6, 2020, and assessed on that same day, there is a returned check penalty in the amount of $25. No other details were provided.
Last Wednesday, Gov. Ralph DLG Torres notified IPI that the CNMI government intends to suspend or revoke IPI’s exclusive casino license, in response to IPI chief executive officer Donald R. Browne’s letter last Aug. 11 that IPI would not be able to pay the $15.5 million annual license fee by the Aug. 12 deadline.
Browne also asked for an abatement of the casino license fee for the year 2020, citing Section 25 of the Casino License Agreement and because of the worldwide pandemic.
Browne also proposes that payment of the $3 million to support the operations of Commonwealth Casino Commission that IPI must pay by this October be delayed until 30 days before the scheduled reopening of IPI’s casino in Garapan.
