Solaire operator Bloomberry is planning to fight a suit levelled against it over loans provided to overseas subsidiaries.
The current motion in defense, filed by Bloomberry, contests the tax allegations and aims to revert the court decision over their eligibility.
Bloomberry Resorts Corporation has been ordered to pay PHP49 million ($880,000) over allegedly deficiency documentary stamp tax (DST) by the Philippines Court of Tax Appeals.
The amount includes surcharges and interest over the loans and advances it gave its non-resident foreign affiliate companies.
According to the nation’s Tax Code, the loans and advances Bloomberry granted to its non-resident foreign corporation affiliates Solaire Korea Co., Ltd. and Golden & Luxury Co. Ltd. should have been subject to the DST.
However, Bloomberry argued that its Tax Code did not cover such loans and advances because Solaire Korea Co., Ltd., and Golden & Luxury Co. Ltd., were not residents of the Philippines and hence were not required to pay such tax.
