Antique dads flexing muscles vs Semirara Mining over unpaid taxes
San Jose, Antique – Unless Semirara Mining Corporation abides by the Supreme Court decision and pay the balance of its back taxes of about P80 million in real properties, the Sangguniang Panlalawigan of Antique, in aid of legislation, is poised to refer the case to the proper court for action .
Last week, the SP started its inquiry into the issue and for a first step passed a resolution ordering their provincial legal officer to demand payment of back taxes of about P80 million from the giant mining firm.
Sponsored by SP Alfonso V. Combong Jr, the resolution tasked the provincial attorney to make the necessary demand letter and to take appropriate action to execute and implement the decision of the Supreme Court.
A retired judge, Combong stressed that the decision of the Supreme Court "has the force and effect of law and should therefore be obeyed." Otherwise, the SP, he said, in aid of legislation, will pursue the case in the proper courts if only to help the province collect what it is due for the benefit of the people of Antique.
Lawyer Eduardo Fortaleza, Antique's Legal Officer, for his part says he is more than willing to make the demand letter to the mining firm saying too that the Resolution is not necessary as it is part of his job to do so. While he opts for a continuing dialogue with the firm regarding the collection, he also looks at legal actions as a means to collect should Semirara continue to disregard the Supreme Court Ruling.
Semirara Mining Corporation is the country's largest local coal producer. It is 58% owned by the Consunji led DMCI Holdings and accounts for 92% of the country's total coal output. For the first nine months of the year, it posted coal sales of 2,551,169 metric tons valued at P4.59B up by 25% compared to the same period last year. This year too, Semirara started exporting coal to China and India.
It got embroiled in said tax controversy after it refused to pay real property taxes being imposed on it by the local government of Caluya, its host municipality. For not doing so, the company invoked its tax exemption privileges granted it under Presidential Decree 972 or the "Coal Development |Act".
Saying such privilege had already been revoked with the passage of the 1991 Local Government Code, the Municipal Government of Caluya filed a case against the company in 1996 demanding payment of P22 million representing real property back taxes covering 1992 to 1996.
In December 1999, The Regional Trial Court of Culasi ruled in favor of the Municiaplity of Caluya and directed Semirara to pay the back taxes and to henceforth pay the town government annually. A subsequent appeal made by the mining firm was denied in September 2000 and with it came a court resolution amending its original decision. This time, Semirara was asked to pay its back taxes with an interest rate of 2% per month of its unpaid obligations starting April 1992.
A petition filed by the company before the Court of Appeals seeking to nullify the RTC Decision and its Resolution was likewise denied as the CA sustained both. In its petition, Semirara insisted that the trial court rulings "are null and void for having been issued without or in excess of jurisdiction."
Semirara further elevated the case to the Supreme Court but the high court also sustained the decision of the RTC and ordered the company to pay the Municipality of Caluya a total of P114 million in alleged accumulated deficiency real property taxes.
According to Antique Provincial Treasurer Sherlita Mahandog, only P41 million of the amount had so far been paid by the company. The amount was paid in installment as part of a compromise agreement with them. Of this amount, 35% goes to the provincial government, 40% is retained by the Municipality of Caluya and the rest to the host barangay of Semirara.
In last week's discussions at the SP, the members are also looking at the possibility of rescinding the compromise agreement should the mining firm continue to disregard the decision of the Supreme Court.
As of presstime, Semirara is yet to issue its statement on this development.