Listed Grand Plaza Hotel Corp. (GPH), which owns The Heritage Hotel Manila, on Monday said one of its bank de-posits has been garnished by the Bureau of Internal Revenue (BIR) for its alleged tax deficiencies.
Last Friday, GPH was informed by Land Bank of the Philippines (LBP), that the BIR has issued a warrant of garnish-ment against its deposit, the company said in a disclosure to the Philippine Stock Exchange.
Grand Plaza noted the account with LandBank has a deposit of P71.7 million.
The amount would supposedly partly satisfy the company’s alleged income, withholding, and value-added tax de-ficiencies totaling P506 million in 2008.
“To date, the Corporation has not received the original Warrant from the BIR,” Grand Plaza told the PSE, referring to the collection letter received by the company from the BIR on December 12, 2013.
On February 20, 2015, the company filed a petition for review before the Court of Tax Appeals questioning the va-lidity of the collection proceedings initiated by the BIR commissioner.
Grand Plaza noted the commissioner requested for a reinvestigation and a recomputation of the tax liabilities but was denied of such.
The matter is still pending litigated before the CTA, the company said.
Heritage Hotel Manila is a 450-room deluxe hotel with a casino, restaurants, function halls, and ballrooms.
The company’s main source of income is the revenue from its hotel operations.
“The Corporation is consulting its tax advisers to obtain advice on any appropriate action that may be taken in rela-tion the Warrant,” the company said.