Client News
Badelles clarifies statement on Global Steel Philippines
Aug 09, 2006
(Manila, Philippines, August 9, 2006) — Lanao del Norte representative Alipio Badelles (1st District) yesterday denied a statement published in a national daily pertaining to alleged tax liabilities of Global Steel Philippines.
Badelles was quoted in The Manila Times saying that the steel manufacturer has been unable to pay real property taxes amounting to P100 million, excluding taxes on imported equipment. The article also said the lawmaker suggested that a “possible disruption in operations due to garnishment of its assets may jeopardize the jobs of new hires.”
In a letter to Times reporter Neil Mugas, Badelles said, “Let me clarify that the tax liability I was referring to pertains to National Steel Corporation (NSC) and not that of Global Steel Philippines Inc. (GSPI), formerly Global Steelworks International Inc. I am not privy of (sic) information regarding tax obligations of Global Steel Philippines, if any, to the City Government of Iligan.”
Tax arrears of the former NSC from 1999 to 2004 amounting to P177 million were settled between the Iligan City Government and the NSC liquidator, “wherein the relief included waiver or reduction of interests and penalties and allowing payment in installments,” Badelles further explained.
According to GSPI officials, the pending tax liability is against NSC and only current liabilities accrue to GSPI. The officials said GSPI has no unresolved tax issues with the Iligan government.