Tax adjustments pull down profit of BDO unit

Dominion Holdings Inc., formerly BDO Leasing & Finance Inc., posted lower earnings in the nine months to September on the back of higher expenses attributed to a BIR tax adjustment for a prior period.

Net income in the first nine months of the year declined by 29.6 percent to P28 million.

The company saw rising interest rates pull up fair value gain on its investments to P49.5 million from last year’s P45 million.

However, its total expenses rose to P21.5 million from P13.1 million, largely due to a BIR tax adjustment.

Dominion Holdings had voluntarily surrendered its secondary license as a financing company to the Securities and Exchange Commission (SEC) following approvals from its board of directors.

Last July, Dominion obtained SEC approval for the change of its corporate name as well the shift in its primary and secondary purposes from a leasing and financing company to that of a holding company.

“As an investment holding company, Dominion Holdings will have more flexibility in pursuing business opportunities which will enhance shareholder value for its shareholders,” it said.