Tax court: No fraud evidence vs SMI
In its 19-page resolution promulgated on 10 February, the CTA noted that SMI made a formal request in 2011 to Tampakan LGU for a change of its classification for local business tax purposes
The Court of Tax Appeals said the municipal government of Tampakan in South Cotabato, Philippines had no evidence to support its allegation that Sagittarius Mines Inc. employed “fraud and misrepresentation” in its application for a Mayor’s Permit.
The ruling means that the Tampakan LGU had no basis to padlock SMI’s office in Tampakan in September 2022 and should immediately process and issue SMI its business permit.
SMI, the Philippine government’s Tampakan copper-gold project permit holder, earlier asked the CTA to suspend the collection of alleged tax deficiency amounting to P400 million from the period 2013 to 2022.
The company also sought to stop the order of the local court in Koronadal City setting aside its previous directive to the Tampakan LGU, among others, about the issuance of the Mayor’s Permit.
In its 19-page resolution promulgated on 10 February, the CTA noted that SMI made a formal request in 2011 to Tampakan LGU for a change of its classification for local business tax purposes.
In support of its request, SMI cited a 2009 Circular issued by the Department of Finance and the 1998 legal opinion of the Provincial Legal Officer of South Cotabato opining that SMI is a “manufacturer” for local business tax purposes.
Tampakan LGU granted SMI’s request and assessed it the necessary local business taxes, mayor’s permit fees, and other regulatory fees as a manufacturer from 2012 to 2022.
SMI’s formal request for reclassification as “manufacturer” for local tax business purposes was approved by the former Tampakan mayor, the father of the incumbent.
The Daily Tribune
March 7, 2023