Power

Aboitiz reaches deal with Ilocos town which threatened to sell its assets for not paying P82.25M taxes in 15 years

The energy subsidiary of the Aboitiz family has managed to stop the sale of its properties in a Northern Luzon town to cover for its unpaid real property taxes of P82.249 million in 15 years.

Aboitiz Power’s Luzon Hydro Corp (LHC) said it has reached a compromise agreement with the Ilocos Sur provincial government to settle its tax delinquencies that have piled up from 2004 to 2019.

The town had announced the auction of Abotiz’s seven assets (machines, properties and equipment) to cover the firm’s back taxes in separate biddings in the fourth quarter last year.

Aboitiz blocked the sale with a temporary restraining order issued by the Regional Trial Court of the Province of Ilocos Sur while it haggled with the province’s officials starting February 2020.

Aboitiz said it finalized a compromise agreement with Ilocos Sur officials on July 22 to settle the case which was promulgated by the RTC.

Aboitiz said the case would not have a material impact on its business as the power plant accounts for less than one percent of Aboitiz Power’s consolidated earnings.

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