Fitial OKs call center tax relief

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Posted on Feb 25 2006
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For the second time, a call center proponent on Saipan got the nod of the Executive Branch on its tax break request.

Gov. Benigno R. Fitial approved on Feb. 23, 2006, the qualifying certificate application of We Manage Calls Inc., giving the company its requested tax breaks of over 10 years.

The same application was first approved by former governor Juan N. Babauta on Nov. 28, 2005, as recommended by the Commonwealth of Development Authority. The initial certificate gave the company $2 million worth of tax rebates over 10 years.

This decision, however, was not acceptable to the applicant, prompting it to file a petition with CDA for a bigger tax break.

The company had said that if it would not get its original request, which is definitely bigger than $2 million, it would move its business plan to nearby Guam.

In the amended qualifying certificate signed by Fitial, We Manage Calls gets a 100 percent corporate income tax rebate for 10 years.

It will also receive a 100-percent business gross revenue tax abatement for five years and full excise tax abatement for three years.

In a separate interview following the CDA’s revised approval, We Manage Calls part-owner Erick Van Der Maas said that the changes are consistent with the company’s original request.

In its initial presentation, the company said it intends to invest $2 million for the call center project, which it estimates to generate a cash flow of $98 million over 10 years.

The company said it hopes to employ over 200 personnel after two years of operation.

Van Der Maas said the call center would occupy the whole 7th floor of Nauru Building in Susupe.

Meantime, CDA board chair Tom Glenn Quitugua earlier said that the board’s amendment to its previous decision was made upon the company’s submission of additional information relating to employment benefits, among others.

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