Vitarich Corp. on Thursday revealed it has been assessed by the Bureau of Internal Revenue with a P1.3- billion tax liability the company allegedly failed to pay five years ago.
In a disclosure to the Philippine Stock Exchange, Vitarich noted the assessment made included income tax, -added tax, withholding taxes, documentary stamp tax, and fringe benefit tax.
“Vitarich is taking appropriate legal steps to assail the assessment on the grounds of prescription and lack of factual basis,” the company said.
Vitarich went into corporate rehabilitation in 2006, and emerged from it late last year.
In the first quarter of 2016, the company said it managed to turnaround its operating results with a net income of P38 million from a net loss of P63 million a year earlier.
Sales rose by 70 percent to P1.16 billion from P685 million in the same comparable period, largely on higher sales volume of animal and aqua feeds.
“The company will continue with its aggressive marketing campaigns to further expand its sales and distribution network… and identify its niche in the market,” it said.
Gross income more than doubled at P154 million due to improved efficiency of poultry operations.
Founded by the brothers Feliciano, Lorenzo, and Pablo Sarmiento in 1950, Vitarich has since become a major link in the farm-to-consumer supply chain.
In 2014, the Securities and Exchange Commission has approved a debt-to-equity conversion of some P2.38 billion of the company’s debt.
ADM Capital and Altus Capital have infused money into Vitarich through Kormasinc Inc., a special purpose company set up to absorb all the company’s debt.