Semirara wins P77.25-M tax refund
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.