No squabble over Philex tax-A A +A
Tuesday, April 22, 2014
LA Trinidad, Benguet – Tuba officials clarified there is no bad blood between them and Itogon town over anticipated tax payments of Philex Mining Corporation.
A resolution clarifying the issue was approved by the entire local council in reaction to a news article published in a local weekly last month.
The news article stated Tuba and Itogon are now jockeying for positions on how to allocate the P1M share of each municipality while Tuba officials claims the news article stated what transpired in the agreement prematurely.
Previously, Itogon and Tuba towns have agreed to settle the business tax issue to the tune of P200 million through formal talks with the mining firm’s legal counsels.
Tuba in its resolution said both municipalities are still determining the terms of payment for each area as members of both town councils have been instructed by their respective mayors to demand from Philex a onetime payment of compromise tax, be it in cash or in the form of public projects, with Philex asking to pay the amount in installments.
Tuba in the resolution clarifying the issue outlined the initial agreement which states; P50,000,000 to be paid in 10 days from the signing of the Memorandum of Agreement with another P25,000,000 to be paid in the last quarter of 2014; another P25,000,000 will be used in the form of projects spread over a period of 3 years from 2015 to 2017.
An agreement between Philex Mining Corporation and the two municipalities has finally been reached after years of misunderstanding.
The final action which is a formal signing of the Memorandum of Agreement will be after both councils have reviewed the new MOA where P200 million will be paid by Philex and divided into both towns.
The tax payment of Philex is a landmark case with the issue going on for years, making collection a problem for both municipalities.
The resolution was filed in Tuba’s regular council session and forwarded to the provincial board for clarification.
Published in the Sun.Star Baguio newspaper on April 23, 2014.