Ifugao BIR chief lobbies for Magat tax

LAGAWE, Ifugao -- The chief of the Bureau of Internal Revenue here is appealing for a 50-50 or equal sharing with the district office of Isabela all revenue taxes to be paid by the Statkraf Nortfund Power Investment and Aboitiz Power, Inc. (SNAP, Inc) over the operation of the Magat Power Plant.

Lawyer Elena Rillera, Revenue District Officer here said the SNAP, new owner of the Magat Power Plant located in the territorial jurisdiction of the provinces of Ifugao and Isabela, has opted to register its head office at Ilagan, Isabela. “This means they will be paying their taxes there.”

Rillera said the payment of the taxes of the said company should be the same with the agreement of the two provinces when it comes to the payment of franchise taxes which is equal sharing.

“A total amount of P200 million will be added to our collection if this will materialize. The SNAP will be the biggest taxpayer in Ifugao once this is realized,” Rillera said.
The amount of P29 million has reportedly been received by the province as its franchise tax share over the operation of the Magat Dam.

Rillera said she is optimistic that her appeal will be granted since she had working on this with SNAP and BIR officials.

In a memorandum of agreement dated August 1, 2001 entered into between the provincial governments of Ifugao and Isabela represented by then governors Teodoro Baguilat Jr. and Faustino Dy, Jr, respectively and the NPC represented by its then president, Jesus Alcordo, it was agreed that payment by the NPC of the franchise tax collections shall be divided equally or on a 50:50 basis, which scheme shall be reckoned and computed to commence from fiscal years 1994 and onwards.

The two provinces have not yet resolved the boundary dispute hence the problem on where will the owner of the dam will pay the franchise tax and the revenue taxes.

“The Internal Revenue Allotment (IRA) of the province shall increase and bring progress and development to the province once the SNAP will grant our request,” Rillera said.