Grand Plaza Hotel seeks more ways to resolve tax issue

MANILA, Philippines - Grand Plaza Hotel Corp., the company behind Heritage Hotel Manila, is seeking further remedies to resolve its alleged P508-million tax liability with the Bureau of Internal Revenues (BIR).

In a disclosure to the local bourse, the hotel operator said its board of directors has directed its tax counsel to study further solutions in connection with the BIR’s denial for a reinvestigation and recomputation of its alleged tax liability stemming from the agency’s 2008 tax assessment.

“The corporation’s tax counsel is studying further administrative and/or legal remedies in respect of the tax assessment,” Grand Plaza said.

Grand Plaza said it received in 2013 a collection letter from the BIR for its alleged deficiency income tax, value-added tax, expanded withholding tax, withholding tax on compensation and documentary stamp tax for the year 2008.

The total amount stood at P508.10 million, consisting of P262.58 million for basic tax and interest of P245.42 million from January 2009 to Sept. 30, 2013.   

The hotel operator said it asked the BIR for a reinvestigation and recomputation of the amount but has been denied of such.

Grand Plaza owns and operates Heritage Hotel Manila, a 450-room deluxe hotel with a casino, restaurants, function halls and ballrooms.

The company’s main source of income is revenue from its hotel operations.

As of the first nine months last year, the listed firm’s total revenue dropped to P334.75 million from P451.79 million during the same period the previous year.