Burger: CNMI’s BGRT needs fixing
CNMI Taxation, with a focus on the Business Gross Revenue Tax, took center stage at the weekly meeting of the Rotary Club of Saipan at the Crowne Plaza Resort Saipan last Tuesday, which featured David J. Burger as the club’s guest speaker.
Burger, who is a managing partner at Burger Comer Magliari’s Certified Public Accountants, shared a little on some of the CNMI’s taxation flaws but also gave some perspective on the CNMI financial reports.
“Every government, including the CNMI government, has to get audited every year
And we are down to two firms giving audits, which is Princeton Young and my firm,” he said. “…I’ve been to the governor’s office at least three times this year. They are trying to get the 2021 figures audited. …It’s two years later. That’s what happens when you don’t have enough people in that department [Department of Finance] to generate the numbers. I don’t know the solution to that. It’s a struggle for the accounting firms. It’s a struggle in a lot of Industries…to get graduates to come and work to do the things we do. “
Aside from the delayed financial reports, Burger shared that current CNMI tax laws and forms do have some flaws that also need to be changed.
“We have some stuff in our tax laws and our forms that’s just not right and [I’m] trying to get it fixed. …I guess the ball is in my court. I have drafted legislation before and I’m going to have to draft it to get the things fixed.”
Another big issue that the CNMI faces is its BRGT law, which he said has prevented investment firms from coming to the CNMI.
“Imagine you are an investment firm. All you do everyday is buy and sell securities stocks, bonds, corporate notes, whatever it is that you do. Our law says that every time you sell one of those… [give] 5% [as BGRT]. Now you don’t make 5% on every trade and sometimes you lose money on a trade. So that’s why we have no investment firms here. They can’t deal with the BRGT. That’s a problem I would like to get fixed. When we had the meeting at the Chamber of Commerce, I said my preference is get all the gains and losses over the year, net them out. If you have a gain, pay the BGRT. …Now we just have to run it through the Legislature. “
Rotary Club of Saipan’s president Irene Holl and the club’s leading officers and directors pose with David Burger, managing partner of Burger Comer Magliari’s Certified Public Accountants, after his presentation last Tuesday at the Rotary Club of Saipan’s weekly meeting at the Crowne Plaza Resort Saipan.
-CHRYSTAL MARINO
