P’sinan power co-op’s bank account garnished

LINGAYEN, Philippines – The Pangasinan Electric Cooperative 3 (Panelco 3), which serves 16 towns and a city in the eastern part of the province, is in financial trouble after the Bureau of Internal Revenue (BIR) garnished one of its bank accounts in payment of its tax liability amounting to P400 million.

Alarmed by the situation, the provincial board yesterday invited BIR and Panelco 3 officials to shed light on the matter.

The BIR regional office said it is not allowed to discuss issues on reassessment, as the order of the Court of Tax Appeals against the power cooperative is final. 

Board member Ranjit Ramos Shahani said they are planning to ask the National Electrification Administration (NEA) to take over the management and operation of Panelco 3, which is based in Urdaneta City.

Shahani said he wanted to determine whether or not Panelco 3 should continue under the current leadership or should be taken over by the NEA.

Panelco 3 is asking the BIR to allow it to pay P5 million yearly until the whole amount is covered.

But Shahani doubted whether the tax agency would grant the request or is in a position to do so.

Board member Alfonso Bince Jr. said the BIR has reportedly garnished P30 million of Panelco 3 accounts with the Land Bank of the Philippines.

Bince said other bank accounts of the electric cooperative will also be garnished and this would affect the delivery of services.

Board member Mojamito Libunao Jr. said he was wondering how Panelco 3 accumulated P400 million in tax liability.

Allan Casem, Panelco 3 officer-in-charge, said they asked the BIR to reassess the amount, saying the management believes it was inaccurate.

Casem said the cooperative had paid part of the tax being charged.

Panelco's tax liability started in 2009.