Biomet hopes to arrange dispute with IRS soon

November 26, 2009 6:00 AM

Bertie Braam, the lawyer of the prosthesis-importing company, estimates that the garnishment order served on Biomet Curaçao will actually amount to approx. 500.000 guilders. The IRS has served a garnishment order on the Taams Clinic and on the St. Elisabeth Hospital (Sehos).

A garnishment order implies that the creditor may also place an attachment for his claim on everyone still owing him. However, the permission of the judge is required.

Braam expects that his client will receive the attachment for serving on Monday. He points out that Biomet’s tax consultant will have to sort this out with the IRS and he hopes that this will be solved shortly.
Braam explains his estimation as follows, “Biomet has invoiced approx. 4.6 million guilders. Let’s assume that 100 percent profit has been passed on, which means that prosthesis’ have been purchased for 3.2 million. This leaves 3.2 million. Suppose we deduct another 1.2 million on costs. The profit is therefore roughly 2 million guilders. Tax on profits is 25 percent, which amounts to approx. 500.000 guilders. The IRS should not be claiming more than that.”

In this matter, Braam criticizes the fact that the court case of Biomet against the Taams Clinic had brought up the non-payment of invoices, and insinuated that Biomet’s administration was incorrect. According to Braam, it had actually been the bookkeeper, director Karel Bade and the clinic’s lawyer who could not agree on which invoices had been paid during the court case. Therefore, Braam speaks of ‘foul play’. Furthermore, the lawyer points out that Bade had meanwhile been sent on holidays because he had not given a complete picture of the facts during the due diligence for the sale of the clinic. Braam had learned the aforementioned from the newspapers. The basic proceedings of Biomet against the Taams Clinic for an amount of 1.7 million guilders, has meanwhile started. Biomet has received a bank guarantee of 500.000 guilders from the Taams Clinic, as determined by the judge in summary proceedings.

(Source: National newspaper Amigoe)

23 November, 2009