Investment Board suspends resort tax break application

FOR fear of throwing the Bohol Investment Board (BIB) into bad light, it held in abeyance the approval tax incentives of a resort investment in Panglao. The move came amidst what members perceive as discrepancies in the application and the lack of documentary requirements, Bohol Chamber of Commerce and Industry (BCCI) Chairman Norris Joseph Oculam revealed early this week.

Speaking during a radio interview, Oculam explained that as the board is mandated to approve projects and investments asking for tax incentives and holidays according to the investment code of the province, it is also the board's duty to screen applicants so as not to put the board in bad light.

With the application of Eskaya Beach Resort in Bolod, Panglao, Oculam said the BIB noticed that the application still needs additional requirement before the Board could act on its application for possible tax incentives.

Eskaya, a resort in development near the posh Bohol Beach Club, is also reportedly having some legal problems with land ownership and lacks environmental compliance certification (ECC) from the local Department of Environment and Natural Resources. According to an existing investment code, the BIB can recommend for tax holidays for six years or to grant an equivalent of 10% of the investments assets, Oculam shared.

Moreover, he said the board only has powers on investments that are not within the scope of Philippine Economic Zones Authority. The investments approved for tax incentives, also qualify it for technical assistance from the Bohol Investment Promotion Center (BIPC), an affiliate office mandated to assist investors on their paper processing, he added.

As to the case of Eskaya, the applicant has not completed clearing up its land dispute issue. Secondly, the BIB also wants the management to submit a court clearance first, to settle its ECCertification. Finally, BIB also noticed some possible Eskaya legal problems with an incorporator who is believed to be a minor, Oculam told radio listeners.

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