Napocor owes Ifugao P13 M in taxes

LA TRINIDAD, Benguet, Philippines – The National Power Corp. (Napocor) owes the provincial government of Ifugao some P12.9 million in real property taxes for the operation of the Magat Hydro-Electric Power Plant in Alfonso Lista town.

This came after the Supreme Court (SC) on Dec. 6 denied with finality a petition filed by Napocor questioning the tax assessment by the province.

Napocor claimed that being a government-owned and controlled corporation, it is exempted from paying real property taxes.

Following the SC order, provincial treasurer Samuel Marinay asked Napocor to settle its tax obligations. 

The issue started on Dec. 2, 2002 when the provincial assessor’s office sent Napocor an RPT assessment regarding the hydro power plant in Barangay Sto. Domingo.

Napocor refused to accept the assessment and asked for a re-computation. It claimed it was exempted from paying property taxes as provided under the Local Government Code of 1991.

The provincial treasurer denied Napocor’s request for exemption. The power firm refused to pay up.

In October 2006, the provincial government sent another demand letter asking Napocor to settle its tax obligation amounting to P7.4 million, covering the period from 1993 to 2006.

Instead of paying, Napocor filed on Jan. 14, 2007 a petition before the Local Board of Assessment Appeals (LBAA) protesting the assessment.

The LBAA denied the petition for late filing. It also junked Napocor’s motion for reconsideration on Aug. 2, 2007.

The power firm filed a motion with the Central Board of Assessment Appeal on Sept. 13, 2007, which was also denied.

Napocor took the case to the Court of Tax Appeals, which denied the appeal due to lack of jurisdiction on the case.

It filed a petition for review on certiorari with the SC, which denied the complaint due to Napocor’s failure to show that the CTA erred in its decision.