THE Court of Tax Appeals has suspended the implementation of an order issued by the Regional Trial Court of Koronadal City, South Cotabato, which upheld the bid of the municipality of Tampakan, South Cotabato to collect more than P400 million alleged deficiency taxes from Sagittarius Mines Inc. .
Furthermore, the CTA granted the plea of SMI to restrain the Tampakan municipal government from enforcing any assessment based on Municipal Ordinance No. 66 pending the resolution of the main case. The CTA noted that if a collection of the deficiency assessment were made, petitioners would not be able to operate.
“In this case municipal respondents are enjoined from interfering, impeding or otherwise closing down petitioner’s operations pending resolution of whether or not petitioner was validly assessed under Municipal Ordinance No. 66,” the CTA declared.