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Call center reviewing CDA OK
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Posted on Nov 25 2005
We Manage Calls Inc. says it is reviewing the recommendation issued by the Commonwealth Development Authority on its qualifying certificate application.
The CDA, according to business proponent Erick Van Der Maas has recommended a $2-million worth of tax abatement over 10 years.
“We’re still reviewing it,” said Van Der Maas, indicating that their team was anticipating for a bigger tax break from the government through the QC program.
He said he is awaiting comments from his California-based business partner, Hans Smith, about the CDA recommendation.
We Manage Calls applied for a 10-year tax relief.
It wants to receive exemption from the excise tax in the first three years, an exemption from the Business Gross Receipt Tax for five years, and a 10-year exemption from corporate tax.
The project involves $2 million in fresh capital and it projects a cash flow of $98 million over 10 years beginning late this year or early next year.
The business aims to employ up to 200 people, 80 to 90 percent of them are local or U.S. residents.
Based on the plan, it will begin the operations with 30 people in December this year.
The number will increase to 50 by June 2006 and 100 by end of 2006.
By middle of 2007, it hopes to have employed 150 staff.
Beginning 2008, its workforce would increase to 200 or more.
The business would also result in $1.5 million extra revenue for the telecommunication company and $600,000 in extra income to the Commonwealth Utilities Corp.
Meantime, the CDA has submitted its recommendation on the call center to the Governor’s Office for final approval.
CDA administers the government’s qualifying certificate program which grants various tax incentives of up to 100 percent in tax rebates for 25 years to investors who build, expand, and operate commercial projects in the CNMI.
A call center business refers to reservation centers, help desks, information lines or customer service centers.
Van Der Maas said We Manage Calls is an inbound call center, which means that it answers incoming calls from customers for order placement, selling, and related customer services.
