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Doral Financial Corp. (NYSE:DRL) Adamant Over Its Tax Refund Claim From Puerto Rico

Boston, MA 09/23/2014 (wallstreetpr) – Doral Financial Corp. (NYSE:DRL), the second largest mortgage lender reiterated firmly that it owns a $229.9 million tax refund from Puerto Rico government. Back in 2012, both Doral and Puerto Rico came to a consensus that the former is entitled to receive a refund of tax on account of restatement of earnings that occurred between 1998 to 2004. But, the agreement was voided by Puerto Rico’s treasury department claiming that the company made the deal through fraud.

Doral Presses The Refund Demand

Today, the Doral Financial Corp. (NYSE:DRL)’s General Counsel, Enrique Ubarri has stated that after reviewing the refund numbers and agreement with Chief Executive Officer, Glen Wakeman, he concludes that the refund total is correct. Though, the government’s treasury officials continued to reject the claims of Ubarri throughout the trial that took place in front of Superior Court Judge Laureana Perez Perez. Doral Financial Corp. (NYSE:DRL)’s representative said that the failure on the part of Puerto Rico to honor the deal could impact all the existing contracts in between the government and private companies on the island. The warning by Doral piles up on the existing slack economic scenario prevalent in Puerto Rico, which has recorded negative economic growth in five out of seven fiscal years in the past. The government on the island is already trying to cope with the sluggish environment by slashing budgets, freezing salaries of workers and closing down schools in some of the areas. In fact, three of the biggest credit-rating agencies have already cut the debt profile of the island to junk in February this year.

Treasury Disagrees

Meanwhile, the justice department highlighted that the witnesses remain firm on their statements that the company has made false representation and the refund amount in question is not supported by evidence. Moreover, the treasury department did not move from their view that there were no overpayments of taxes and thus, there is no question of refund. The judge has given five days to each party to complete the filing of their final arguments, after which Perez will pass a written ruling.

Published by Brendan Byrne

While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. You may contact Brendan via his email ([email protected]) or his Google+ page (https://plus.google.com/u/0/116608759701551457422).

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