GGRAsia – Bloomberry to fight US$877k tax on loans to S.Korean units

Bloomberry to fight US$877k tax on loans to S.Korean units

Jun 14, 2023 Newsdesk Latest News, Philippines, Top of the deck

Philippines-based casino operator Bloomberry Resorts Corp says it will “file a motion for reconsideration” to challenge the decision of the country’s Court of Tax Appeals regarding taxes on loans to certain overseas units.

Bloomberry was ordered to pay PHP49 million (US$876,522) in “outstanding documentary stamp tax” on loans and advances provided to its South Korean subsidiaries, reported on Wednesday Philippine media outlet GMA News.

In a filing to the Philippine Stock Exchange, the company confirmed the news report, but said the outcome of the case was “not material” to its operations.

Bloomberry is the owner and operator of Solaire Resort and Casino in the Philippine capital Manila.

In the decision, the court said Bloomberry would have to pay PHP49-million worth of “deficiency documentary stamp tax”, including surcharges and interest, concerning loans and advances it gave to Solaire Korea Co Ltd, and Golden & Luxury Co Ltd.

Solaire Korea Co is the majority shareholder of Golden & Luxury Co. The latter is the owner and operator of Jeju Sun Hotel and Casino (pictured), on the South Korean holiday island Jeju.

In May, Bloomberry reported first-quarter net income attributable to shareholders of just above PHP2.98 billion, on revenues that rose by 78.5 percent year-on-year, to PHP12.83 billion.

Jeju Sun reopened on October 3 last year, after a period of closure because of Covid-19, and resumed with hotel operations, two restaurants, and “limited gaming capacity”. That operation remained loss-making in the first quarter of 2023, according to the parent’s filing in May.