Grand Plaza appeals P500-M VAT deficiency finding of BIR

MANILA, Philippines - Grand Plaza Hotel Corp. (GPHC), the operator of The Heritage Hotel Manila along Roxas Blvd., has appealed the Bureau of Internal Revenue’s finding of deficiency value-added tax amounting to more than P500 million.

In a disclosure to the Philippine Stock Exchange, GPHC said it “filed a petition for review with the Court of Tax Appeals to invalidate the collection proceedings of the BIR.”

This was in reference to the formal letter of demand issued by the BIR on Jan. 9, 2015, asking GPHC to settle alleged deficiency taxes amounting to about P506.03 million within 10 days from receipt of the letter.

The amount comprised P262.58 million in basic tax and P245.52 million in interest from Jan. 20, 2009 to Sept. 30, 2013.

In seeking the appeal, GPHC stressed that the proceedings initiated by the BIR is void because the assessment did not comply with the requirements of law and lack factual and legal basis.

GPHC posted a net income of P393.9 million on revenues of P466.95 million.    

The company owns the 467-room Heritage Hotel Manila in Pasay City.

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