FIRST Philippine Holdings Corp. (FPH) said on Friday that it intends to ask within the day the Court of Tax Appeals (CTA) to reconsider its decision that granted in part the Lopez-led firm’s petition for review to protest a tax assessment of around P1.5 billion.
“FPH maintains that the assessments are without valid basis. It will be contesting the foregoing on factual, due process and legal grounds with respect to the assessments sustained by the CTA,” it told the stock exchange.
The firm said it had received on Dec. 20, 2019 the CTA decision ordering it to pay P1.21 billion composed of deficiency taxes, 25% surcharge plus 20% deficiency and delinquency interest.
FPH said it was also being ordered to pay delinquency interest of 12% on the total unpaid deficiency taxes as of July 15, 2014, computed from Jan. 1, 2018 until fully paid.
The decision came after the firm disclosed on Feb. 20, 2015 that it had filed a petition for review with the CTA to protest a tax assessment of the Bureau of Internal Revenue for different taxes, including interest and penalties, of around P1.5 billion.
The company’s major business segments are in power generation, real estate development, manufacturing, and construction and other services.
As of the third quarter, it reported a 35% increase in net income attributable to equity holders of the parent firm to P9.6 billion, which reflected the increase in operating income.
Its financial performance was also due to favorable foreign exchange rates and deferred income tax movements, as well as the decline in non-recurring expenses incurred by a subsidiary.
On Friday, shares in FPH rose by 0.59% to close at P68.40 each. — Victor V. Saulon