Town revives bid to collect P1.3B in taxes from mining firm

A SECURITY guard and workers of Philex Mining Corp. view the Balog creek in Itogon, Benguet which was affected by a tailings spill in August 2012. The creek has since been cleaned. RICHARD BALONGLONG/INQUIRER NORTHERN LUZON

BAGUIO CITY—The mining town of Itogon in Benguet province has revived a tax dispute with the Philex Mining Corp. and has threatened to shut down the tailings pond and mill site of the firm’s Padcal mine should it fail to pay P1.3 billion in accumulated business taxes dating back to 2002.

“We will be forced to issue a closure order if the Philex management will not act on our bid to collect the business tax they owe us since 2002,” Itogon Mayor Victorio Palangdan said.

He said Philex had refused to secure business permits from the Itogon government for their tailings dam and mill site, which he described as “an insult.”

“They refuse to secure business permit but they are using our facilities, like our roads,” he said.

The tax payments would be shared by Itogon and neighboring Tuba town, said Palangdan.

The Inquirer on Tuesday reached lawyer Eduardo Aratas, Philex legal officer for its Padcal mine operations, but he said he could not immediately issue a statement on the matter.

Itogon had demanded payments in 2012, which Philex officials agreed to pay.

But the company announced in August 2012 that the mine had secured its payments in an escrow account because Itogon and Tuba had failed to agree as to how the towns would share the Philex taxes.

The Padcal tailings dam and mill site stand on a disputed boundary area being staked by Itogon and Tuba.

Tuba Mayor Florencio Bentrez, in a previous interview, said officials of the two towns agreed to split their share from excise taxes accrued from Philex’s operations, but not fees paid for permits.

“Philex has been using our boundary dispute as an excuse to evade paying their debt but we already have reached an agreement,” Palangdan said.

He said the town councils of Tuba and Itogon have passed a joint resolution to express the sentiment of each town being entitled to half of the P1.3 billion tax obligation.

“We will submit to the Philex central management our joint resolution and give them some time to act on our request,

[although] one month would be too long for them to act,” Palangdan said.

Tuba Councilor Gary Behis confirmed that a joint resolution exists, but said Tuba is also negotiating separately with Philex about the financial obligations. Kimberlie Quitasol, Inquirer Northern Luzon