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Call center gets requested tax break
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Posted on Feb 02 2006
The Commonwealth Development Authority has granted the proponent of a call center project its requested 10-year tax abatement.
CDA board chair Tom Glenn Quitugua said the board’s decision came following the submission of additional information by the applicant, We Manage Calls Inc.
Quitugua said the board took into consideration the tax dollars for employment and capping of benefits.
“There were merits that were put on that even the applicant was not aware of,” said Quitugua.
Quitugua said the company’s tax break went up “a little bit” from the initial granting of $2 million tax incentive over 10 years.
In a separate interview, We Manage Calls Inc. part-owner Erick Van Der Maas said that CDA’s favorable action is consistent with their original request.
“The board voted to recommend modification of the qualifying certificate to remove the rebate abatement… That means that we get the tax break that we need. It’s very good. I think this new administration is very business-friendly,” said Van Der Maas.
The company appealed the government’s earlier approval for a $2 million tax break, saying it was too small.
The company had applied for exemption from the excise tax in the first three years, Business Gross Receipt Tax for five years, and corporate tax for 10 years.
Prior to CDA’s revised decision, We Manage Calls had planned to totally scrap the plan on Saipan and move the business to Guam instead.
The company wants to invest $2 million for the call center project, which it estimates to generate a cash flow of $98 million over 10 years.
In its initial plan, it wanted to begin the operations with 30 people in December 2005.
The business aims to employ up to 200 people after two years.
Meantime, Quitugua said that We Manage Call’s experience showed that differences can be settled within the confines of the CDA.
