Press Release by Taganito Mining Corporation (TMC) on the tax issues raised by Claver Mayor Eddie P. Go.

1. Taganito
Mining
Corp.
(TMC)
would
like
to
react
to
the
allegations
by
Mayor
Eddie
Gokiangkee
that
the
company
has
unpaid
local
business
taxes
to
the
Municipality
of
Claver.
In
fact
TMC
has
received
no
formal
assessment
from
the
Municipality
with
respect
to
unpaid
business
taxes,
including
during
those
years
when
Mayor
Eddie
Gokiangkee
was
the
Mayor
of
Claver.
Local
business
taxes
and
the
rates
applicable
to
various
types
of
business
activities
are
imposed
by
Municipalities
pursuant
to
their
respective
Revenue
Codes,
which
in
turn
should
reflect
the
provisions
of
the
Local
Government
Code
of
1991
(RA
7160).
The
facts
are
as
follows:
•
In
2002,
which
was
during
the
term
of
Mayor
Eddie
Gokiangkee,
the
local
business
tax
for
mining
activities
pursuant
to
the
Claver
Revenue
Code
was
2.2%
of
gross
revenues
or
sales.
This
is
in
violation
of
Sec.
143(h)
of
the
Local
Government
Code,
which
prescribes
a
maximum
business
tax
rate
of
2%.
The
2002
Revenue
Code
of
Claver
was
thus
faulty.
•
In
2007,
likewise
during
the
term
of
Mayor
Eddie
Gokiangkee,
an
apparent
amendment
to
the
Revenue
Code
was
made,
reducing
the
local
business
tax
for
mining
to
2%.
However,
TMC
was
not
informed
of
any
such
amendment,
and
upon
investigation
by
TMC
some
years
later,
no
documents
can
be
produced
by
the
Municipality
to
support
the
allegation
that
its
Revenue
Code
was
validly
amended,
including
approval
by
the
Provincial
Government
of
such
amendment.
Furthermore,
no
assessment
was
received
by
TMC
from
the
Municipality.
•
When
Ms.
Rosemarie
Gokiangkee
assumed
office
as
Mayor
of
Claver
in
2010,
a
dialogue
was
entered
into
between
TMC
and
the
Sangguinian
Bayan
of
Claver.
It
was
pointed
out
by
TMC
that
the
Revenue
Code
of
Claver
was
faulty
and
not
in
compliance
with
the
provisions
of
the
Local
Government
Code.
TMC
encouraged
the
Sangguinian
Bayan
to
either

2. amend
or
pass
a
new
Revenue
Code.
In
the
interim,
TMC
voluntarily
agreed
to
pay
the
equivalent
of
1%
of
its
gross
revenues
as
financial
assistance
to
the
Municipality
via
a
Deed
of
Financial
Assistance,
signed
in
2011.
In
such
Deed,
which
was
ratified
by
the
Sangguniang
Bayan
of
Claver,
it
was
agreed
that
the
financial
assistance
would
cover
the
period
2007
to
2010.
In
2012,
a
new
Revenue
Code
for
Claver
was
passed,
starting
with
taxable
year
2011,
prescribing
a
rate
of
1%
of
gross
revenues
as
the
local
business
tax
for
mining
activities.
•
The
records
will
show
that
pursuant
to
the
Deed
of
Financial
Assistance,
TMC
has
paid
a
total
of
P44.74
million
for
the
years
2007
and
2008.
An
unpaid
balance
of
P22.10
million
is
still
due
and
payable
by
TMC
for
the
years
2009
and
2010,
but
the
Municipality
under
Mayor
Eddie
Gokiangkee
has
refused
to
accept
this.
Furthermore,
pursuant
to
the
new
Revenue
Code
of
Claver,
TMC
paid
business
taxes
amounting
to
P19.44
million
for
2011,
P21.90
million
for
2012,
and
P22.94
million
for
2013.
TMC
notes
that
this
is
apart
from
both
the
2%
excise
tax
and
a
5%
royalty
since
it
operates
within
the
Surigao
Mineral
Reservation,
both
of
which
are
shared
between
the
national
government
and
the
local
government
units
and
which
amounted
to
a
total
of
P629
million
for
the
aforementioned
three
years.
TMC
wishes
to
state
that
as
a
responsible
corporate
citizen,
it
shall
always
pay
validly
imposed
taxes
and
fees
in
compliance
with
all
laws
and
shall
continue
to
assist
its
host
barangays
and
Municipality
in
every
possible
way.
Apart
from
its
contribution
under
its
Social
Development
Management
Programs,
it
has
committed,
together
with
its
affiliate
company
Taganito
HPAL
Nickel
Corp.,
to
construct
a
new
Taganito
High
School
to
accommodate
the
influx
of
students
as
a
result
of
the
expansion
of
business
activities
that
has
resulted
in
a
veritable
boom,
not
only
in
its
host
barangays
but
in
the
Municipality,
an
evacuation
center
for
its
host
barangays
in
coordination
with
the
National
Disaster
Risk
Reduction
and
Management
Council,
and
has
participated
in
the

3. newly
constructed
Provincial
Community
Training
Center
in
Bad-­‐as,
Placer,
to
improve
the
technical
skills
of
Surigaonons.
Its
parent
company,
Nickel
Asia
Corp.,
is
also
in
the
process
of
constructing
a
10-­‐
MW
bunker
power
plant
to
alleviate
the
shortage
of
power
in
Surigao
city.
TMC
stands
by
its
record
as
a
good
corporate
citizen
and
as
a
major
contributor
to
the
economic
development
of
both
Claver
and
the
province
of
Surigao
del
Norte.