Property leasing firm PTFC Redevelopment Corporation said Monday its net income for the fiscal year ending August was down, mainly due to payment of a deficiency tax to the Bureau of Internal Revenue (BIR).
PTFC was formerly Philippine Tobacco and Flue-curing and Redrying Corp. and now engages in leasing properties, including warehouses.
It’s wholly owned subsidiary, Baesa Redevelopment Corporation, leases commercial spaces in Baesa Town Center in Quezon City.
In the firm’s annual financial report to the Philippine Stock Exchange, the company said its net income for 2015 was down to P29.6 million from P32.3 million in 2014.
It said the decrease was “due to the payment of the parent company’s deficiency tax for a case against the BIR.”
The BIR assessed PTFC with a tax deficiency of P10.84 million for the company’s tax period in 2005.
The company said it paid its deficiency taxes amounting to P4.1 million, including related interest expenses, in October 2014.
In June 2015, both PTFC and the BIR filed their respective appeals to the Court of Tax Appeals (CTA), where the case is still pending.
Despite the decrease in net income, the company said its earnings “are more than sufficient to support its operations.”
Meanwhile, the company reported that revenues for the year slightly increased by 2.7 percent to P148 million, from the P144 million last year.
PTFC noted that the bulk of the increase was “due primarily to the higher occupancy of the company’s warehouses and new tenants in Baesa Town Center.”