Puerto Rico to file appeal in Doral dispute by Friday
NEW YORK Dec 29 (Reuters) - Puerto Rico will file an appeal this week in its legal battle with local lender Doral Financial Corp over $229 million in disputed taxes, a spokesman for the U.S. Commonwealth's Government Development Bank (GDB) said on Monday.
On Monday, Doral shares jumped 27 percent on trading volume that was more than three times the daily average over the last 25 days. The stock has been volatile in the run up to the appeal deadline.
In October, a Puerto Rico judge ruled in favor of Doral in its dispute with the Puerto Rico Treasury Department. The judge gave Puerto Rico 60 days to appeal, a deadline that expires on Friday. After the ruling, the Treasury said it would use "all legal options available" to appeal the ruling.
Earlier this year, the Treasury Department voided a 2012 agreement that set a $229 million tax refund for Doral resulting from a restatement of inflated earnings during a six-year period from 1998 to 2004.
Treasury Secretary Melba Acosta said the agency voided the deal because it was never recognized in government accounting books and because the statute of limitations had run out on the refund. Officials also cited discrepancies in Doral financial documents and said the agreement was reached through fraud. (Reporting by Edward Krudy; Editing by David Gregorio)
© Thomson Reuters 2017 All rights reserved.