Iloilo City Legal Office sent a demand letter dated June 16, 2021 to Panay Electric Company (PECO), previous distribution utility in city, ordering the latter to settle unpaid franchise taxes amounting to P51,425,406.37.
Based on the Tax Order of Payment, the breakdown includes tax due of P33,178,320.24 plus penalty of P18,247,086.13.
These cover the 2nd, 3rd, 4th quarter taxes from billed monthly electricity charges from January 1, 2019 to December 31, 2019.
“The said collected 2019 Franchise Tax payments are still in your control and possession without any legal authority for you to do so and failure to pay/remit the same to the City constitutes the crime of syndicated estafa,” said Atty. Edgardo J Gil, chief of City Legal Office in his letter.
PECO has yet to issue a statement regarding the matter.