Response of SARA to the Alleged Tax Payments of RRMI

The Save Rapu-Rapu Alliance responds as follows to the statements of RRMI, BIR and PEZA re tax payments:

1. The environmental damage is much more than the benefits from alleged taxes. The current and future benefits from farming and fishing will be almost totally wiped out. The alleged taxes are in the millions; farming and fishing benefits are beyond quantification, being the source of sustenance for all generations of island residents.

2. There is no verification of actual payment. Government agencies and mining companies have been accused of collusion and cover-up.

3. There is no independent validation of income declared by RRMI; hence, there is no certainty that the amounts allegedly paid as taxes are correct.

4. The alleged taxes are from RRMI only. RRPI enjoys exemptions as PEZA privileges. This could be the reason for the separation of the two companies. RRPI is 100% foreign-owned; RRMI is 64% foreign-owned. The claim is that the privileges are for four (4) years. The PEZA law stipulates six (6) years which can be extended to eight (8) years (Special Economic Zone Act of 1995 Rule XV Section 6). It is not surprising then that the mine life is set at eight (8) years.

5. The local BIR office wants the taxes to be paid to them instead of BIR national office to improve the former’s tax collection performance. They did not express desire to ensure that the benefits accrue to the residents of the island.

6. There are discrepancies between taxes alleged by RRMI and those reported by MGB.

7. There is no visible benefit for the residents of the island in terms of roads, bridges, health services, and other projects and programs. For example, it still takes 7 hours for residents of Tinopan and Binosawan to carry on their backs the farm produce to Poblacion.

In the light of these considerations, the Save Rapu-Rapu Alliance refutes the alleged payment of taxes as justification for the continued operation of the mine. We maintain our stand that the mine should be closed, and that the mining companies clean up the contaminated areas, pay for the damages, and leave the island. We also reiterate our call for the implementation of alternative options for the development of Rapu-Rapu such as land distribution, farm subsidies, potable water system, decent housing, fast transportation, environment-friendly roads, power generation, and preservation of the island’s ecosystem.


Save Rapu-Rapu Alliance
October 20, 2009