IPI files lawsuit against CCC amid looming tax deadline

The newest development in the ongoing controversy surrounding Imperial Pacific International (IPI) is that the casino operator has filed a complaint against the Commonwealth Casino Commission (CCC).

This event occurs just before IPI’s deadline of December 30th to return $62 million in purportedly unpaid taxes and penalties to the commission.

The lawsuit, which was submitted to a federal court, charges that the CCC overreached its jurisdiction by reading the Casino License Agreement like a judge. Imperial Pacific International claims that this action is not only illegal but also a violation of the company’s constitutional rights in the Commonwealth of the Northern Mariana Islands (CNMI) and the United States.

In particular, the case claims that the CCC disregarded the constitutions’ due process clauses. It asserts that the CCC has broad and sometimes exclusive authority to interpret the casino license and settle disputes pertaining to the legislation that governs its operations.

The main focus of the legal issue is the activities related to the casino license’s suspension and revocation, which were caused by IPI’s claimed refusal to pay regulatory fees specified in the licensing agreement. Imperial Pacific International questions the CCC’s decision-making process, arguing that the commission’s financial dependence on regulatory fees paid by the company creates a conflict of interest.

Legal experts surmise that the CCC’s reluctance to dissolve stems from its pursuit of money that IPI is allegedly owed; these monies are essential for paying CCC members’ salaries.

Imperial Pacific International is challenging the legality of the regulatory requirement that calls for an annual payment to the CCC of $3 million. Moreover, the company is striving to hinder the CCC from carrying out its mandate as per the CNMI laws.

Original story by: Asia Gaming Brief