Miners ‘feeling pressure’ to file their tax waivers TWO MINING companies are rethinking their refusal to file waivers that will permit the government to disclose their tax payment details to third parties, a move which forms part of a global initiative for financial transparency of extractive industries. However, the Philippine Extractive Industries Transparency Initiative (PH-EITI) said the two companies -- AAM-PHIL Natural Resources Exploration and Development Corp. and Citinickel Mines and Dev’t Corp. -- are feeling the pressure from the local mining industry. Posted on October 15, 2014 “As of now the EITI is voluntary. It’s up to the companies to participate,” said Maria Meliza T. Tuba, program officer at PH-EITI, told BusinessWorld in a telephone interview. However, she added that both companies have given feedback to the Chamber of Mines of the Philippines of their intent to issue waivers. The waivers allow the government to get around legislation prohibiting the public disclosure of certain tax payments. The waivers will also enable the Bureau of Internal Revenue (BIR) to provide tax information about the companies, which cannot be done under the National Internal Revenue Code. “The pressure is there,” Ms. Tuba said, adding that even without the waivers, the EITI will still be implemented since all the other companies have already agreed to participate. Mr. Tuba said the EITI is important at this stage since it allows the industry to be able to show its transparency and for the public to have a renewed confidence in a mining sector that has “ethical investors.” The EITI is a global coalition of governments, companies and civil society working together to improve openness and accountable management of revenues from natural resources, according to its Web site. The EITI standard establishes a mechanism for debate about the resources inside the country, and its multi-stakeholder platform provides a dialogue about all aspects of the use of their country’s natural resources. Currently, 37 out of the 39 metallic mining companies have signed the waiver. Meanwhile six of 11 oil and gas companies have yet to sign. In a speech posted on the Mines and Geosciences Web site this week, Environment Secretary Ramon Jesus P. Paje indicated that the non-signing of the waiver indirectly acts as an obstacle to the full operationalization of the EITI in the Philippines. -- Eric B. Dorente
Posted on: Thu, 16 Oct 2014 11:09:02 +0000
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