The Division of Revenue and Taxation of the Department of Finance has reasserted with the U.S. District Court for the NMI its tax lien on the assets of Imperial Pacific International (CNMI), LLC, as it takes up the U.S. Department of Labor receivership case against IPI today.
Finance, through their counsel, Dustin D. Rollins, said the Commonwealth’s tax lien has priority. This means that before IPI can pay its dues and other obligations, they must prioritize the Commonwealth’s tax lien before anything else.
Rollins said the purpose of submitting notices of a tax lien in favor of the Commonwealth to all property and rights to property, whether real or personal, belonging to IPI means that the CNMI will take all actions necessary to protect those rights.
Finance filed the tax lien against IPI in federal court last August 2020 for allegedly failing to pay $9,416,887 in Business Gross Revenue Tax for the tax period in 2017 to 2019. At the time, Richard Santos, Revenue and Taxation Collection & Remittance branch manager, said that this liability remained unpaid despite a demand for payment.
According to Saipan Tribune archives, for the tax period that ended on Dec. 31, 2017, the unpaid balance is $3,289,333. For the tax period that ended on Dec. 31, 2018, the unpaid balance is $2,064,036. For the tax period that ended on Dec. 31, 2019, the unpaid balance is $2,013,024 and $2,050,462. For the tax period that ended on April 6, 2020, plus a returned check penalty in the amount $25.