Philex confident tax woes will end soon

MANILA, Philippines - Philex Mining Corp. has expressed confidence that its tax row with the municipalities of Itogon and Tuba in Benguet would be resolved positively.

Philex senior vice president for Corporate Affairs Mike Toledo said the company’s talks with the leaders of the two towns have been constructive.

“We just have to make sure that we are paying to the right entity, with the right assessment, and in compliance with the law,” he said.

The tenement of the company’s Padcal copper-gold mine straddles the two towns with the mine site situated in Tuba while the tailings pond is located in Itogon.

The two towns are now going after Philex for P2.2 billion in unpaid taxes accumulated since early 2000.

He said Philex is asking for a valid tax assessment to ensure that the company is not paying taxes already imposed by the local government.

“A settlement is crucial in assessing the correct amount to be paid as tax laws are based on the location,” Toledo said.

In a recent interview, Philex president and CEO Eulalio Austin said the municipalities are asking for two percent of the company’s gross receipts.

He said the taxes remain unpaid because of jurisdictional and boundary issues. “Because we have to know where we should pay the taxes,” he said.

Under the present revenue sharing regime, mining companies pay a two-percent excise tax to the national government as well as a slew of other taxes.

“So it’s like in the nature of an excise tax, so it’s like we are being double taxed. So we are appealing that,” Austin said.