Leading oil refiner Petron Corp., 40 percent-owned by the government through the Philippine National Oil Co. (PNOC), refuted yesterday allegations by the Bataan local government that the oil company has been remiss in paying its real estate taxes.
With this, the oil firm has already filed a complaint before the Regional Trial Court to stop the provincial treasurer of Bataan from auctioning its properties at the Bataan Refinery for alleged non-payment of realty taxes from 1994 up to the first half of 2007, amounting to P1.7 billion.
Aside from religiously paying its property taxes, Petron claimed that it is even advancing payments to the province of Bataan.
Petron said their records will show that since 1994, it has paid real property taxes of P1.675 billion based on previous assessments made or approved by the province.
“The revised assessment of the provincial assessor on our properties at the refinery is erroneous, excessive and invalid and the provincial treasurer’s actions thereon have no legal basis,” Petron’s legal and external affairs vice president Jose Jesus G. Laurel said. “The intention to auction some of Petron’s properties on Oct. 17, 2007 is highly irregular, and we are prepared to exhaust all legal remedies.”
Petron has also appealed the assessment to the local board of assessment appeals.
Previously, in response to the issuance of a notice of revised assessment and notice of delinquent taxes on Petron’s real properties dating back to 1994 up to the first half of 2007, Petron sent a letter to the treasurer pointing out that: the increased assessment for back taxes violates the Local Government Code; it does not comply with the law, implementing regulations and tax collection procedures; it even included items that should have been excluded for realty tax purposes; and that, if at all, the revised assessment should only take effect in 2008 since it was made after Jan. 1, 2007.
Despite these, and the willingness of Petron to post a bond pending the resolution of the issues, the provincial treasurer proceeded to schedule the auction of the refinery properties on Oct. 17, 2007.
“As a major stakeholder in the province of Bataan, we are more than willing to discuss these alleged back taxes. However, we have an obligation to the public interest to ensure a continued and reliable supply of fuels,” Laurel said.
At present, Petron is the leading oil refining and marketing company in the Philippines. Its 180,000 barrel-per-day oil refinery produces a full range of petroleum products to supply nearly 40 percent of the country’s fuel requirements.