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Sunday, December 17, 2006
Telecom pays customs taxes under protest
CEBU CITY -- Telecommunications firms Globe Telecom Inc. and Innove are paying "under protest" the duties and taxes on their importation of equipment allegedly due to erroneous tax assessment by the Department of Finance (DOF).
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Both Globe and Innove are represented by Esperanza H. Mercado, head of the customs clearing sections of both companies.
Globe's latest importation is mobile telephone equipment, while Innove is the consignee of capital equipment classified as connector fixed-tuned mates.
Mercado stated in his letter to the Bureau of Customs (BOC) that it is Globe's position that an erroneous assessment of 12 percent value-added tax (VAT) on their shipments was made by DOF, as set forth in the DOF memorandum dated Jan. 20, 2000.
She said this undue assessment violates the provisions of Globe's congressional franchise, Republic Act 402 as amended, particularly Section 3 (a) thereof, which expressly grants Globe exemption from paying customs duties, tariffs and other taxes on all "radio equipment, telecommunication equipment, machinery and spare parts needed in connection with the business.
On the other hand, Mercado said that Innove is granted congressional tax exemption by virtue of its franchise, Republic 7372, but was also erroneously assessed of 12 percent VAT on the shipment of capital equipment based on a Malacañang ruling dated Jan. 20, 2000.
Mercado said Innove is mandated only to pay franchise tax of three percent of all gross receipts of the business transacted under it and the percentage shall be in lieu of all taxes on earnings.
"In order to effect the immediate release of the telecom equipment subject to this shipment, Globe hereby pays the 12 percent VAT hereto assessed under protest," Mercado stated in her letter to BOC.
Urbano said all importations of Globe and Innove nationwide are paid of duties and taxes under protest and could already run in billions of pesos.
He said under the Tariff and Customs Code, Globe and Innove are obliged to pay duties and taxes.
Urbano added that he have not yet read the laws giving franchises to the two firms, hence, he don't know why Congress grant tax exemption to them.
He, however, recognized the right of the Globe and Innove to pay duties and taxes under protest if they believed they are really assessed erroneously. (EOB of Sun.Star Cebu)For more Philippine news, visit Sun.Star General Santos. (December 17, 2006 issue)
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