TEMPO photo courtesy
QUEZON CITY – The Court of Tax Appeals (CTA) said that the local government unit of Tampakan in the province of South Cotabato has no evidence to support its argument that Sagittarius Mines, Inc. (SMI) employed “fraud and misrepresentation” in its application for a Mayor’s Permit.
In its 19-page Resolution promulgated on February 10, 2023, the CTA said that “[t]he evidence on record, however, fails to support respondents’ argument that [SMI] employed “fraud and misrepresentation” in its application for Mayor’s Permit.”
The CTA noted that SMI made a formal request to the Tampakan LGU for a change of its classification for local business tax purposes.
In support of its request, the CTA said that SMI cited in its letter-request 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 SMI as such starting in 2012.
“In this case, records show that in the Letter dated February 2, 2011, the petitioner made a formal classification, from a “general engineering contractor” to “manufacturer” for LBT purposes. In the subject letter, it cited Department of Finance – Local Circular No. 02-09 dated August 20, 2009, as well as the Letter dated February 20, 1998, issued by the Provincial Legal Officer of South Cotabato, opining that the petitioner’s predecessor for the Tampakan Project, Western Mining Corporation (Philippines), Inc. falls under the category of a manufacturer.”
“Thereafter, the petitioner was re-classified as a manufacturer, as evidenced by Tax Due Worksheet for 2012 to 2022 issued by municipal respondents. Assessing petitioner local business taxes, Mayor’s permit fees, and other regulatory fees as a manufacturer only as well as Business Permits for TY 2012 to 2022.”
“The foregoing narration of events, duly supported by documentary evidence, contradicts municipal respondents’ bare allegations of fraud and misrepresentation,” the CTA further said.
Tampakan LGU earlier padlocked SMI’s office claiming SMI committed “fraud and misrepresentation” in its application for a business permit.
The CTA granted SMI’s Urgent Motion for Issuance of a Suspension Order last February 10, 2023.
The case stemmed from the denial by a Koronadal City local court of SMI’s application for the injunctive writ.
A preliminary injunction is an order granted at any stage of an action or proceeding prior to the judgment or final order, requiring a party or a court, agency, or a person to perform to refrain from performing a particular act or acts.