AN OFFICIAL of the Misamis Oriental Provincial Government on Tuesday, November 7, said Pilipinas Kao Inc. (PKI) should have applied for real property tax (RPT) exemptions even if it is already covered by the Special Economic Zone Act.
Dexter Yasay of the provincial press office said a tax exemptions have to be applied for those investing in the country under the jurisdiction of the Philippine Economic Zone Authority (Peza).
"It is like withholding tax among individuals if you have more than 2 children you are exempted but it is not automatic, an individual should apply for an exemption sa BIR (Bureau of Internal Revenue) para dili ma-deductionan sa sweldo (so the salary will not be deducted)," Yasay said.
"Ang problema sa PKI nag-apply ba sila for exemption? Nahadlok sila og apply because they will be penalized. Mura ba sila og ma-mandamus ana kay wala sila mag-comply (The problem with the PKI, did they apply for exemption? They were afraid to apply because they will be penalized. They are like mandamus since they did not comply) ," Yasay added.
According to the
In a counter affidavit filed on November 13, 2015 by former treasurer and now acting provincial accountant Marilou Rivera, she asserted that PKI failed to comply with the section 206 of the local government code which requires it to submit documentary evidence to the provincial assessor to establish which tax-exempt properties should be dropped from the assessment roll.
Rivera said there was no endorsement from the provincial assessor regarding PKI's exemption from RPT which prompted her to collect taxes and revenues as part of her ministerial mandate, thus, she said, her issuance of warrants of levy and garnishment is lawful.
Rivera was suspended by the Office of the Ombudsman for one year after she was found guilty of the charges filed by Pilipinas Kao Inc. (PKI), a company that supplies high quality and biodegradable chemical products from coconut oil in both local and international markets.
Based on investigation by the Ombudsman, the Provincial Government had assessed the company's unpaid real property taxes for 11 years from 2002 to 2013 in the total amount of P631.5 million.
Procolo Olaivar, manager of Peza, sent a letter on September 26, 2013, citing PKI's exemption from paying local taxes, including real property taxes since it is covered by the Special Economic Zone Act or Republic Act 7916.
The Philippine government declared the whole plant site in the town of Jasaan as an economic zone in 2001.
But Yasay said the Central Board of Assessment Appeals (CBAA) earlier resolved PKI's petition for re-examination and/or re-computation, advising the firm to first pay the P631.5 million assessment, albeit under protest, before any re-computation or amicable settlement is entertained.
Yasay said instead of following the advice of the CBAA, PKI opted to file a complaint against Rivera before the Ombudsman.
"Based sa ilang (PKI) assessment ang ilang bayronon daw is P150 million more or less admitting naa sila obligation pero gusto nila ipa-recompute. Giresolve na kana sa CBAA, gitambagan sila nga it is a payment under protest they need to pay first before i-entertain ilang re-computation (Based on [PKI’s] assessment, their bill was P150 million more or less, admitting that they have an obligation to pay, but they want it to be recomputed. CBAA already solved that, they were advised that it is a payment under protest they need to pay first before their request will be entertained)," Yasay said.
Yasay added the Misamis Oriental Provincial Government has filed a motion for reconsideration on October 29, asking the Ombudsman to reverse its decision.