ILOILO CITY鈥擳he Panay Electric Company (Peco) on Monday, Dec. 9, paid nearly P135 million in real property taxes to the Iloilo City government, three days before the scheduled auction of some of its properties for purported tax delinquencies.
In separate statements, Peco and Iloilo City Mayor Jerry Tre帽as confirmed the payment covering Peco鈥檚 tax liabilities from 2016 to 2019.
A statement released by the city public information office cited the total amount paid as P134 million while Peco said it paid a total of P134,927,522.63.
Tre帽as in the statement welcomed the settlement of the tax liability.
鈥淭his is a welcome development for us,鈥� said the mayor.
He said the funds were to go to 鈥渕uch improved social services and other initiatives.鈥�
Tre帽as in November said some of Peco鈥檚 assets were among the properties set for auction on Dec. 12 for being delinquent in payment of taxes estimated at P90 million.
The taxes cover those levied on Peco鈥檚 electric poles standing on land owned by the city government.
Peco said the amount it paid excluded interests and penalties subject of two cases filed at the Local Board of Assessment Appeals.
鈥淣ow that Peco has paid the tax liabilities assessed by the city government of Iloilo, there is no more reason to proceed with the planned auction,鈥� said Marcelo Cacho, Peco head of public engagement and government affairs.
Cacho said Peco has 鈥渁lways been willing to amicably settle鈥� its tax cases and disputes with the city government. He noted that Peco had paid in advance until Dec. 31 of this year.
He said that out of the nearly P135 million paid, around P60 million was for the principal amount of their realty tax obligations which is subject of one tax case, No. 2017-01.
Around P75 million was payment for their realty taxes subject of another tax case, No. 2019-01.
Cacho said Peco filed the first tax case in 2017 questioning the realty tax assessment issued in 2016.
鈥淧eco never opposed the paying of new property taxes,鈥� said Cacho.
鈥淲e just wanted clarification on why suddenly we get slapped with an unfair ten-year back-tax assessment,鈥� he said.
Peco鈥檚 franchise expired on Jan. 18 but the Energy Regulatory Commission had granted a provisional Certificate of Public Convenience and Necessity to Peco to continue distributing power in Iloilo City to prevent any disruption of power supply to consumers amid Peco鈥檚 continuing legal dispute with More Power Electric Corp. (More Power)
More Power, which has been granted a 25-year franchise, is seeking to expropriate Peco鈥檚 distribution assets which triggered a legal showdown between the firms.