In their latest proposal, Saipan government officials have called for implementing a 10 percent tax on Imperial Palace casino’s net gambling revenue.
The proposal to introduce a percentage tax comes after reports emerged that since July 2018, Imperial Pacific International (IPI), the gambling operator which own and operates the casino, had only contributed $41,000 in tax revenues.
In a statement to the press, Chairman of the House Gaming Committee, Ralph Yumul, also said that the company would no longer be allowed to deduct unpaid credit from revenue while ascertaining the taxes.
“No deduction shall be allowed from gross revenues for the unpaid balance of any obligation or credit extended for gambling or gaming,” he said.
Earlier in March, Imperial Pacific International group, reported a loss of $415.3 million for the year ending December 2018. The casino said that it had a drastic dip in revenues coming from the VIP visits.
Yumul also asserted that the proposed bill would “discourage lending for the purpose of gambling by providing that unpaid balances on loans extended for gambling shall not be deducted from gross revenues.”
Responding to the new proposal, House Minority Leaders Edwin Propst, commented: “I think we are being very fair and we look forward to hearing from them on this bill. But right now, the urgency is that IPI has not paid any taxes within almost a year.”
Earlier in April estimates showed that the company had paid just US$41,000 in Business Gross Revenue Tax (BGRT) since 1 July 2018. It was significantly less than US$40.9 million it paid in 2016, US$67.7 million in 2017, and US$43.6 million in 2018.