Foreign Affairs backs Itogon on Philex biz taxes

LA TRINIDAD, Benguet -- Taxes owed to Itogon town by the Philex Mining Corporation may soon reach a payment.

Ricardo Cawed, regional director of the Bureau of Local Government Finance, said, “The municipal treasurer has no other recourse but to implement it and cause collection of local impositions as cited in the revenue codes.”

Itogon has since accounted for P542,277,452.94 in business tax payments from Philex.

Cawed said that legal basis in the collection of business tax, as based from the town’s Revenue Codes of 2002 and 2011, is upheld unless competent authority will declare it illegal or unconstitutional.

A government agency is supporting the town of Itogon in its quest to collect P609 million in unpaid business taxes from mining giant Philex Mining Corporation.

Previously, Mayor Oscar Camantiles formed an executive committee to focus on the issue to reconcile accounting matters as well as work with the mining company to resolve the issue.

Itogon is in the middle of resolving a boundary dispute with Tuba town that has hampered the payment of taxes.

Philex has urged both towns to settle their boundary disputes before a tax settlement is to ensue, saying the company can only start to compute the taxes due to both municipalities when a definite host community is determined by courts despite a 50-50 sharing scheme formulated by Camantiles and the municipality of Tuba.

Cawed likewise upheld the scheme crafted by both towns, saying the agreement of the towns are legally binding and enforceable by both parties.

He said Philex should either agree to pay the tax or file a protest that should be resolved pursuant to the provisions of Section 195 of the Local Government Code.

The Bureau noted Philex has been paying 30 percent of business taxes to the City of Pasig and should pay the remaining 70 percent to the Benguet town.