Monday, March 19, 2007 Power firm to donate P11M tax overpay to Benguet
THE Hydro Electric Development Corporation (Hedcor) has agreed to give out its overpayment in real estate taxes amounting to over P11 million to Benguet.
As per the compromise agreement, the Benguet Provincial Government also agreed to correct the tax it imposes on the properties of Hedcor, which would be at two percent of the assessed value of the property.
Hedcor manifested its willingness to donate overpayment from 1993 to 2001 amounting to P9,467,889 to Benguet for "public purposes".
However, the over-collection from 2002 to 2005 amounting to P1,903,199 will be paid back by the province to Hedcor.
Both parties agreed that the payment be done in two equal installments. Benguet will pay P951,599 within one year from the approval of the agreement by the Local Board of Assessment Appeals (LBAA). The remaining balance, meanwhile, will be paid one year after the approval of the agreement.
Under the agreement, however, Hedcor would again donate back the amount to the Provincial Government to be used for the construction of school buildings, particularly in the municipalities of Bakun, La Trinidad, Itogon and Tuba.
The province will implement the school building's construction subject to the power firm's review.
The tax declarations of Hedcor's various properties in the towns of Sablan, Tuba, Itogon and La Trinidad would also be revised to reflect the correct assessments as agreed by the parties.
The agreement, which was signed March 1, is pending before the LBAA. (JC)
