LINGAYEN–Team Sual Corporation finally settled its overdue taxes due the provincial government amounting to P160.8 million for the real estate taxes owed by the Sual Coal Fired Power Thermal Plant’s (SCFPTP) for the period January 1, 2006 to December, 2007.

Gov. Amado Espino Jr. and Team Sual Corporation president Federico Puno signed a Memorandum of Agreement (MOA) at the power plant last week after which a P160,838,136.58 check was handed over by the company to the provincial government.

The amount was broken down as P142,650,232 for the plant’s tax liability, plus another P18,187,904.58 in accrued interest, penalties and related charges.

Provincial Treasurer Ramon Crisostomo said the real property tax was based on the 10 percent assessment level as provided under the provincial tax ordinance.

The amount paid was computed at two percent of the assessed value. One percent of which represents the basic tax for the Special Education Fund (SEF) amounting to P80,419.068.29 and it will be shared equally by the province and the municipality of Sual.

The SEF share of the province will go the provincial school board for the construction and repair of school buildings, purchase of books, chairs and other related supplies and projects.

The other one percent will be shared among the province (35% or P28,146,673.90), the municipality of Sual (40%, P32,167,627) and the host barangay (25%, P20,104,767).

The 35% share of the province from the other one percent will go to the provincial government’s general fund.

Aside from the tax on its machineries and equipment, the Sual power plant will also pay P2 million as land tax annually.

Under the MOA, the Sual Corporation is required to update its payments of its real property tax to the province and failure to do so will mean corresponding penalties and other charges.

LAST TIME

“I hope this will be the last time that we will sit on the negotiating table and I expect that there will be no more signing of MOA next year,” said Espino said.

“What is due to the province should be paid on time,” he added.

Prior to the MOA signing, the Sangguniang Panlalawigan had unanimously approved a resolution No. 89-2007 authorizing the Governor to enter into an agreement with the Team Sual Corporation.

The power plant’s payment of its long overdue tax liability came after a series of talks between the Team Energy officials and representatives of the provincial government and concerned local government units.

Earlier, the municipality of  Sual, the deputized collection agent of the province, has sent a Notice of  Delinquency and final demand letter to National Power Corporation and Mirant Sual Corporation after its petition for tax exemption it filed with the Local Board of Assessment Appeal was denied last July 10.

Puno, who took over the operation of the power plant in Sual on July 15, subsequently said that Team Energy agreed to assume the unpaid tax obligations of plant’s former owner, Mirant Corporation.

Under the new provincial tax ordinance enacted December 2006, the real property tax assessment level of the Sual power plant has increased from 10% to 80%, which means it has to pay the provincial government a total of P570 million in real property tax in ensuing years, according to Provincial Assessor Nestor Quiambao.

Aside from Espino and Puno, the other  MOA signatories were Sual Mayor Rodney Arcinue and Barangay Capt. Dionisio Caburao Sr. of Pangascasan, Sual, host barangay of the power plant. #

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