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Sunday, August 19, 2007
Floating casino up for auction, says BIR
CEBU CITY –- Now here’s a “dream” that two government agencies may soon fight over.
The Bureau of Internal Revenue (BIR) will auction off the mv Philippine Dream on September 28 to cover its tax dues amounting to P59.7 million.
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The highest bidder will get the 9,318-gross ton floating hotel and casino, said the notice of sale signed by Revenue District Officer Maria Soccoro O. Lozano of the BIR District Office 80 in Mandaue City.
Lozano said the owners of the Philippine Dream were sent notices of tax liability at their office in Poblacion, Lapu-Lapu City on March 31, 2006.
However, the taxes due were not settled, so the vessel was levied and is now up for sale by the BIR.
But the Bureau of Customs (BOC) has a pending seizure and forfeiture case on the vessel, so the BIR cannot sell it, said Florante Ricarte, assistant assessment chief of the Port of Cebu.
BOC Cebu District Collector Ricardo Belmonte ordered the seizure of the vessel in August 2006, after it left the Cebu Yacht Club in Pusok, Lapu-Lapu City.
Customs police under Captain Isidro Estrera intercepted the Dream in Magellan Bay, near Liloan town.
In issuing the order, Belmonte said there was an attempt to remove the vessel from its designated wharf without BOC clearance, in violation of the Tariff and Customs Code.
Port of Cebu Legal Officer Edward James Dy Buco started the forfeiture proceedings last year, but he could not be contacted for comment yesterday on why the BIR is now taking charge of the sale.
After the vessel was intercepted last year, Director Angela Fernando of the Board of Investments (BOI) informed the Department of Finance that the BOI cancelled in 2004 the registration of Philippine Dream Corp. Inc. (PDCI) as a new operator of a “tourism accommodation facility” (floating hotel) when it ceased operations in the 1990s.
The PDCI is a subsidiary of Ablan Brothers Corp. in Quezon City.
With its registration cancelled, the firm cannot avail itself of exemptions from duties and value-added taxes (VAT) under Republic Act 7711.
In 2006, the BOI computed the firm’s duties and taxes for the importation of capital equipment at P49.8 million. But because of penalties and other charges, the amount rose to P59.7 million. (EOB of Sun.Star Cebu)For more Philippine news, visit Sun.Star General Santos. (August 19, 2007 issue)
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