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Friday, January 23, 2004
Capitol open to talks with Cruztelco
DUMAGUETE CITY -- Governor George Arnaiz said Capitol is open to sit down with Cruz Telephone Company (Cruztelco) to settle their long-running dispute over the phone company's continuing refusal to pay its tax dues and to revert ownership of the property it is standing on to the provincial government.
Cruztelco is facing a court battle with Capitol that wants the land back and evict the telecommunication company from the property it inherited from the Government Telephone System (GTS) decades ago.
The telephone firm had been adamant in its refusal to pay real property and franchise taxes to the provincial government by invoking congressional exemption.
Capitol became emboldened to collect taxes from the firm after the Supreme Court ruled in the case of Davao City versus the Philippine Long Distance Telephone Company (PLDT) that local governments can collect taxes from telecommunication companies.
On the land ownership issue, Governor Arnaiz explained that the donation to GTS was not absolute.
The governor said GTS turned over the parcel of land to Cruztelco without Capitol's knowledge.
He added the provincial government wants Cruztelco out of the property so it can lease it to other businesses to increase tax revenues.
The parcel of land housing the telephone firm is connected to the property housing the Land Transportation Office, the Department of Public Works and Highways, and the provincial jail.AS
(January 22, 2004 issue)
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