Distribution utility Panay Electric Co. Inc. (PECO) said it paid a total of almost P135 million to the city government of Iloilo, effectively settling its real property tax (RPT) obligations to the local government unit (LGU).
The company in a statement said the amount represents all of its past and present RPT liability from 2006 until 2019, excluding interests and penalties that are the subject of Local Board of Assessment Appeals (LBAA) Case No. 2017-01 and LBAA Case No. 2019-01.
PECO said such payment also effectively averts the Iloilo LGU’s planned auction of the former’s properties tomorrow, December 1, the proceeds of which is supposed to cover the company’s RPT liabilities.
Of the approximately P135 million, around P60 million constitutes payment of the principal amount of RPT obligations of PECO to the LGU under the Tax Declarations subject of the first LBAA case–LBAA Case No. 2017-01.
Around P75 million constitutes payment of RPT obligations of PECO to the LGU under the Tax Declarations subject of the second LBAA case–LBAA Case No. 2019-01, which is not due to be paid until December 31.
In 2017, PECO filed the first LBAA case questioning the RPT assessment issued by the City of Iloilo in 2016. The case has been pending since then as PECO was assessed to pay a 10-year back-tax assessment without providing a proper breakdown.