Tuesday, August 21, 2007 Compromise on tax payment eyed By Jane Cadalig
A PROPOSAL for a compromise agreement regarding Benguet's real property tax claim from a power generation firm is being deliberated by the Benguet Provincial Board (PB).
The PB has proposed that Governor Nestor Fongwan enter into a compromise agreement with the management of the Luzon Hydro Corporation (LHC) and National Power Corporation (Napocor) regarding a case that is now pending before the Central Board of Assessment Appeals (CBAA).
The LHC has appealed to the CBAA that assessment should be done by the Provincial Government on its real properties here.
Among the conditions cited in the proposed compromise agreement is the LHC's payment of real property taxes based on the province's 10 percent special assessment level.
Napocor, meanwhile, shall waive its claim for real property tax exemption and pay the 10 percent special assessment level imposed by the Provincial Government.
The case emanated from the petition filed by the LHC way back in 2002, opposing the province's manner of assessing the power generation firm's real property taxes.
In a resolution, the PB said there is a need to enter into a compromise agreement among the Provincial Government, LHC and Napocor to settle the issue.
"The parties to the case wish to settle the issues with finality after realizing the wisdom of the encouragement of the CBAA," the resolution stated.
