Benguet towns press closure of Philex due to unpaid P2.2B tax

TUBA, Benguet  – The local governments  of Tuba and Itogon are pressing closure of operations of Philex Mining Corp. for non-payment of P2.2 billion to the municipalities. 

Officials of both town bared this to the media but PMC management said it was positive the issue on unpaid business taxes amounting to P2.2 billion over a 12-year period could be reached between their group, the municipal governments of Tuba and Itogon and the provincial government of Benguet to ensure right assessed taxes are paid to where they are due, a senior official said here recently.

Lawyer Mike Toledo, Philex senior vice president for corporate communications, said ongoing talks of their representatives with local officials of Tuba and Itogonhave lately been constructive and cordial, thus, an acceptable agreement over the issues on alleged unpaid business taxes could be reached in the coming months.

“We just have to make sure that we are paying to the right entity, with the right assessment, and in compliance with existing laws, rules and regulations,” Toledo said.

He said core site of its Padcal mine is located in the town of Tuba and that its operations is also registered in the said municipality while its outer areas like its tailings pond is located within the jurisdiction of Itogon town.

However, he said settlement of the issue is crucial in assessing the correct amount to be paid by the mining company to the host communities considering that based on existing tax laws, taxes must be paid by the company to the area where the business is registered or based on the location.

Earlier, local officials of Tuba and Itogon signed a joint resolution signifying their desire to have a 50-50 sharing of the supposed P2.2 billion in alleged unpaid business taxes by the country’s largest producer of gold and copper so that both municipalities could utilize the said funds to bankroll the implementation of various development projects and enhance the delivery of basic services to their constituents.

According to Toledo, Philex wants the two local governments to present a legitimate tax measure coupled with the imposition of the Local Government Code in order to guarantee that the company will not be paying for taxes that are already imposed by the national government which the company was able to settle in the previous years.

“Philex is not running away from its responsibility to pay taxes to the host communities but appropriate consultations must be done with the concerned local governments so that the taxes will be paid to the right local government,” Toledo said.

He said company representatives will continue reaching out to them to fastrack the resolution of the issue in unpaid business taxes that usually crops up.

After a slump in its operations in 2012 which was triggered by the accidental leak on its tailings pond No. 3 that resulted to a net loss of P310 million, Philex bounced back to its old form amidst the decline in the world metal prices and its 10-month operation recording a positive P312.8 million net income thereby boosting its status as the country’s largest gold and copper producer.

Toledo said similar representations of the company will also be done to the provincial government so that all sectors will be able to be appraised on the real score on the alleged unpaid business taxes. – With a report from Dexter See