TVIRD pays town P2.85M as a temporary solution to tax case
Hosting the Miksolobok – Subanon word for “reuniting” – has become a Christmas tradition for TVI. Last December 19, Mine Project Team members feted some 2,000 children from Canatuan, Malusok, and other neighboring barangays to a grand party overflowing with food, fun and games. TVI Canatuan General Manager Yulo Perez, who led the Project Team in ensuring the success of the party, joined the kids and their parents in the dancing and gift-giving. “Our hosting of this event – our second in as many years that we have been operating in Canatuan, — reflects our desire to share with our host communities the blessings our Company received in the past year. Three days after the party, TVI paid the Siocon municipal government P1 million to assist the municipality with its yuletide activities and other projects. The amount is on top of the P1.85 million the company earlier paid as part of the temporary solution to the pending tax dispute involving the two institutions.
Reflecting TVI’s commitment to bring additional economic and social development to its communities and stakeholders – including the broader municipality of Siocon – TVI Resources Development Phils., Inc. (TVIRD) has provided — after fruitful discussions with Municipal Mayor Ceasar Soriano — a temporary solution to the pending tax dispute involving the two institutions.
TVI Canatuan GM Yulo Perez shares a light moment with the children from the Project’s neighboring communities. “He can’t stop pulling P100 peso bills from his wallet because he enjoyed watching — and giving prize money – to those children who danced well,” according to a Subanon mother who joined her two daughters in the party.
The company has paid the municipal government a total of P2.85 million “under protest”, of which P1 million was paid just before Christmas to assist the municipality with its yuletide activities and other projects.
This payment was supplementary to the P1.85 million paid on September 20, 2005 – and also supplementary to the P418, 759.82 paid in escrow to the Regional Trial Court, which is hearing the case.
In short, the Municipality has assessed TVIRD for P4.53 million, when the Company’s lawyers advise that its liability is only the P418,759.82 paid to the Court.
In the event the Regional Trial Court, which is now hearing the case, upholds the municipality’s position on the tax case, TVIRD will pay the municipality the balance of the tax assessment. Conversely, should the court decide in favor of TVIRD, the municipality will refund to the company the difference between P2.85 million and P418,759.82. Another option is for the municipality to give TVIRD a tax credit for future assessments.
Eugene Mateo, TVIRD president, said “this most welcome compromise has allowed TVIRD to increase the benefits of its mining operations in Canatuan to the rest of Siocon since the local government now has additional funds to pursue its programs in the municipality. The Subanon indigenous people in Canatuan have been enjoying economic and social benefits with TVIRD’s assistance. We hope to be able to increase the benefits from our project for the other citizens of Siocon and we believe this can be done. The municipal government of Siocon under Mayor Soriano and TVIRD have, in fact, already partnered in the ongoing improvement of the road from the town proper to Canatuan prior to this agreement.”
“This temporary solution shows that people can agree to disagree and, at the same time, work together on areas that they agree on,” Mateo added. “In this case, both the Siocon municipal government and TVIRD agree that progress can easily be achieved if we all work together for the common good. This temporary solution, of course, was arrived at without prejudice to each party’s differing positions on the tax issue.”
As a backgrounder, the Municipality of Siocon has assessed TVIRD taxes based on the company’s assets amounting to P4,534,278.86. TVIRD filed a submission to the court alleging that the insistence of the Municipality of Siocon in collecting a tax based on the total assets of the company is in excess of its delegated taxing authority, considering that the Local Government Code only allows municipalities to collect business tax based on the gross sales or receipts for the preceding calendar year.
Mateo said he hopes for a speedy resolution of the case so that Siocon and TVIRD can move at full speed to achieve their common goals for the municipality.