Philippine Daily Inquirer / 05:10 AM
September 02, 2017
The Supreme Court (SC) has granted
Semirara Mining and Power Corp.’s (SMPC) appeal for a tax refund of about
P77.25 million.
The high court upheld the March 2011
findings of the Court of Tax Appeals, which sided with the energy firm for
being “erroneously” taxed for its coal sales.
In a decision last June 19, the SC
agreed with the tax court that the company—then named Semirara Mining Corp. or
SMC—was exempt from the value-added tax provided in the Tax Code and was given
incentives through Presidential Decree No. 972. Enacted in 1976, the executive
fiat promotes an accelerated exploration, development, exploitation, production
and use of coal.
The company started out as a
state-run producer of coal, but is now under the DMCI group and is also engaged
in electricity generation and coal exports.
Early this week, SMPC said it has
secured approval from the Securities and Exchange Commission (SEC) to raise its
authorized capital stock to P10 billion from P3 billion.
“The additional authorized capital
will be used to maximize equity funding for future investment/expansion of the
business that the board (of directors) deems to be in the (SMPC’s) best
interest,” the company said in a statement.
It said the increase would allow it
“to act urgently and appropriately on business opportunities and developments
as they may arise in the future.”
Based on the SEC approval, at least
one quarter of the P7-billion increase will be subscribed and fully paid up
through a declaration of stock dividends.
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