Conditional Payment from Sual Power Plant clarified
LINGAYEN— Provincial Administrator Rafael Baraan has ordered Provincial Assessor Nestor Quiambao and Provincial Treasurer Marilou Utanes to write the officials of Sual and to clarify the right amount of assessment to be applied on the Sual Coal-fired Power Plant operated by Team Sual Corporation (TSC).
Baraan said the Sual Power Plant is correctly paying its real property tax based on the 15 percent assessment and not the 80 per cent assessment as provided in a provincial ordinance.
He told newsmen that the 80 percent assessment was appealed by TSC before Central Board of Tax Assessment and pending resolution of the appeal, the appellant will continue to pay based on 15 percent assessment.
Earlier, Prescila Ramos, municipal treasurer of Sual, wrote TSC requesting the company “to pay the real property tax balance (RPT) between the amount based on their assessment of P410 million and the payment of P69.7 million tendered to the provincial treasurer’s office.”
In his April 21, 2014 reply letter to Ramos, Federico Puno, president and chief executive officer of TSC, clarified that “that the payment is based on the formula contained in Executive Order No. 27 dated February 28, 2011, at fifteen percent (15 percent) assessment level, with two percent (2%) depreciation allowance for both buildings and machineries per annum and appreciation of 10% prompt payment discount amounting to Php7,746.490.28.”
The 15 percent tax assessment is just conditional payment agreed upon by the province, municipality of Sual and TSC.
The parties agreed that in the event that there is a final judgment on the issue of taxability of the Power Plant Facilities and the courts find that the Power Plant Facilities (or any portion thereof) are subject to real property taxes, the Conditional Payments shall be credited against the real property payable pursuant to such final judgment without prejudice to any rights the power plant may have under the law or contract.
Share your Comments or Reactions
Powered by Facebook Comments
