Disputed taxes: Philex to Tuba: Settle land dispute firstbefore we pay

By Dexter A. See

LA TRINIDAD, Benguet – Philex Mining Corporation will not pay any taxes to either Tuba or Itogon, both towns of Benguet province, until land conflicts between the two municipalities are finally resolved.

Lawyer Ike Rodriguez, vice president for legal affairs, said despite the company’s willingness to pay business taxes to their host communities, the law dictates a resolution of land woes to be settled before any transaction is made to prevent further complications and so that what would be due to a certain municipality would be fixed.

Rodriguez said the company has urged both towns to settle their boundary disputes for a tax settlement to ensue in order for the host communities to be able to get additional sources of funds that will be utilized for the implementation of development projects and enhance the delivery of services to the people in the future.

“The company is willing to pay its tax obligations to the towns of Tuba and Benguet but the concerned municipal officials must initiate moves to put an end to their long overdue boundary conflicts so that we could ascertain where the funds will really go,” Rodriguez stressed.

Itogon Mayor Oscar Camantiles is bent on collecting billions from Philex Mining Corporation with pronouncements last week saying the mining company owes taxes worth P1.2 billion since 1991.

However, Rodriguez said the Itogon tax ordinance was only enacted in 2002 and stressed business taxes are not retroactive in payment. “That is debatable,” but said the important issue is to facilitate any payment is the boundary tiff between the two towns which had not been settled by previous sets of municipal officials who took turns in administering the affairs of the two mineral-rich local governments over the past several decades.

Rodriguez said the Philex can only start to compute the taxes due to municipalities when a definite host community is determined by the courts or after the two municipalities shall have finally agreed on their respective boundaries through acceptable legal instruments.

Rodriguez said a recent agreement with nearby Tuba town on a 50-50 sharing scheme on taxes inked by both Tuba and Imogene has no legal bearing and will not suffice in courts saying paying under protest will likewise have no binding effect, especially to the company which has been ever willing to settle its tax obligations to whichever town depending on the settlement of the boundary disputes.

In the agreement, the billions due to both municipalities have been agreed to be split and put into an escrow account until the land dispute has been decided on.

Rodriguez said the company has been in constant dialog with both towns urging chief executive to settle their disputes so due taxes can be paid immediately in order for the two localities to utilize such funds to help improve the infrastructures in their respective areas of jurisdiction as well as improve the living condition of their constituents through numerous interventions that could be done, especially in the provision of ample sources of livelihood and improved economic condition.