Supreme Court orders Philex to pay P225 million in back taxes

The Supreme Court has ordered Philex Mining Corp. to pay the government more than P62 million in income taxes from 1982 from its gold mining operations in Benguet Province plus interest amounting to P163 million. The court junked a petition of the company and affirmed a decision by the Court of Appeals dated June 30, 2000 that sustained a ruling by the Court of Tax Appeals against it. Philex in 1971 entered into an agreement with Baguio Gold Mining Co. to manage and operate the Sto. Niño mine in Atok and Tublay, Benguet province. Philex suffered losses over the years and withdrew from the mine on January 28, 1982. Philex in its 1982 annual income tax return deducted P112.14 million from its gross income as "loss on settlement of receivables from Baguio Gold against reserves and allowances," but the Bureau of Internal Revenue disallowed the amount as deduction for bad debt and assessed Philex with a deficiency income tax of P62,811,161.39.

in Manila Times by Rey E. Requejo
April 20, 2008
Read the article