Philex settles tax obligation

MANILA, Philippines - Listed Philex Mining Corp. has signed a P200-million tax settlement agreement with the host towns of its copper-gold operations in Benguet province, ending its tax row with the local government units.

The memorandum of agreement was signed by Philex senior vice president and Padcal mine resident nanager Manuel Agcaoili, Tuba mayor Victorio Palangdan and Itogon mayor Florencio Bentrez. 

The agreement stipulates that the P200-million tax settlement covers all the business taxes due to the towns of Tuba and Itogon from 2013 and earlier years.

“Itogon and Tuba hereby acknowledged that all previous business taxes due them, respectively, are deemed paid and that they shall have no further claims against Philex for any supposed business taxes due for 2013 and all earlier years,” the agreement said.

Philex, in a statement, said the agreement stipulates “full, absolute, complete, and final settlement” of the local business taxes owed, including surcharges and interests.

The agreement also stipulates that the settlement amount would be equally shared by Tuba and Itogon.

The MOA stated that of the P200 million settlement amount, P50 million in cash would be paid directly to the cashier’s office of Itogon and another P50 million to that of Tuba within 10 days upon the execution of the accord.

The remaining P100 million would be divided equally for the respective public projects of the host towns, payable in equal installments of P25 million between the last quarter of this year and the third quarter of 2015.

A boundary issue between the two towns prevented the collection of taxes from Philex.

The host towns agreed that from this year onwards, the business tax imposed on 70 percent of the company’s gross sales company would be shared equally. The business tax imposed on 30 percent of gross receipts would go to Pasig City where Philex has its head office.

“Through the years of its existence, Philex has shown, time and again, that it never shied away and will never shy away from its commitments and responsibilities,” said Agcaoili.