N. Vizcaya pursues P91-M tax from Aussie firm

BAYOMBONG, Nueva Vizcaya, Philippines – The provincial government has asked an Australian mining firm anew to pay its P91 million tax obligations for the operation of a multibillion-peso copper and gold project located at the boundary of this province and Quirino.

Vice Gov. Epifanio Galima Jr. said they will pursue the collection of the tax incurred by the OceanGold Phils. Inc. (OGPI), which operates the national government-backed Didipio project.

Earlier, OGPI asked a Makati City court to decide to which province it should pay tax since the Didipio village, the center of the mining operation, is also being claimed by Quirino.      

The two provinces figured in a boundary dispute as both were claiming the mineral-rich mountain village as part of their territories. 

Quirino Gov. Junie Cua said the village is a part of their territory ever since the province has been declared separate from Nueva Vizcaya in 1966.

Nueva Vizcaya officials, on the other hand, claimed the village has never been ceded to Quirino.

The dispute left the mining company in quandary, as to which province is the rightful recipient of its tax payment and other financial obligations.

Galima questioned the firm for seeking a court intervention on the matter when it has been negotiating with Nueva Vizcaya’s officials since the early 1990s.

He said that time the company was seeking the endorsement of the local government for it to be allowed to operate the project.

Galima said OGPI’s tax obligations has ballooned from P28 million to P91 million from the time the case was filed.

Because of the pending case, he said, the money is being deposited at the court and may stay there for the next 10 years.