Doral Financial Corp. (DRL) Continues Push for $230 Million Puerto Rico Tax Refund

Doral Financial Corp. (NYSE:DRL), the second largest mortgage company in Puerto Rico, through its lawyer, is continuing with its aggressive push for overpaid taxes amounting to $230 million.

There was an earlier agreement between Puerto Rico treasury department and Doral Financial Corp. (NYSE:DRL) for the refund to be effected, but the government turned back to unilaterally nullify the decision. In the nullification, the administration said that the agreement had been secured fraudulently.

The tax refund was to be effected as a result of earnings restatements after it was established that the holding company had overpaid taxes dating back to 1998 to 2004.

Doral Financial Corp. (DRL)

Enrique Ubarri, General Counsel for Doral Financial Corp. (NYSE:DRL) had argued before Superior Court Judge Laureana Perez Perez that the figures are indeed correct and that they had scrutinized them together with the Chief Executive Officer of Doral Financial Corp., Glen Wakeman.

Doral Financial Corp. (NYSE:DRL) stated that the refusal by the government administration to honor the agreement could have far reaching implications. Ubarri argued that other contracts between different government agencies and private entities could be put in jeopardy as a result of the act.

Doral Financial Corp. (NYSE:DRL) has also challenged the government of Puerto Rico to table evidence supporting their fraud claim.

“When this case is over, the people of Puerto Rico will have to ask whether they were well served by their government’s unfounded attack on one of Puerto Rico’s few remaining banks,” Matthew McGill, Doral Financial Corp. said last week.

The lawsuit comes at a time when the economy of Puerto Rico is struggling, having averagely posted a loss for the past seven years. The government has responded to the country’s poor economic performance by cutting down on expenditure.

A statement by the justice department of Puerto Rico however says that the figures being claimed by Doral Financial Corp. (NYSE:DRL) are incorrect. The department said that the said overpaid taxes aren’t supported by solid evidence.

Each side got 5 days to write final argument after which a ruling shall be made.

Tis article has been written by Victor Ochieng.

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