Cebu Province Reaches P211.56 Million Settlement in Tax Dispute with Apo Land and Quarry Corp.
The Cebu Provincial Government has opted to resolve a protracted tax dispute with Apo Land and Quarry Corp. (ALQC) by agreeing to a settlement of P211.56 million. This decision, announced by officials, aims to circumvent a potentially lengthy and expensive court battle, thereby securing a tangible financial recovery for the Province rather than risking an outcome with no funds at all.
Reduction in Amount Due to Legal Constraints
The conflict originated when the Province issued a substantial tax assessment of P1.218 billion against ALQC, covering quarry taxes, monitoring fees, and environmental fees spanning from 2009 to 2025. However, Governor Pamela Baricuatro clarified that the final settlement amount is significantly lower because the majority of the initial charges, particularly extraction taxes, were not legally enforceable. This is due to a Supreme Court ruling that prohibits local governments from imposing extraction taxes on companies operating on private land, as such taxes typically apply only to public land.
Mediation Leads to a Favorable Outcome
Assistant Administrator Aldwin Empaces justified the settlement after Vice Governor Glenn Anthony Soco raised concerns about its appropriateness. Empaces described the agreement as a "win for the environment," emphasizing that without it, the Province could have endured years of litigation with the possibility of recovering nothing. The P211.56 million figure was the result of intensive negotiations over several months, during which ALQC made multiple lower offers that the Province declined:
- August 2025: P6.18 million (Rejected)
- October 2025: P51.56 million (Rejected)
- December 2025: P150 million (Rejected)
- January 2026: Both parties finally reached an agreement on P211.56 million.
Breakdown of the Settlement Details
The final payment is based on revised legal guidelines and technical recalculations, including:
- Monitoring Fees: Recalculated at a rate of P30 per cubic meter.
- Environmental Fees: These fees are fully incorporated into the total amount without reduction.
- Penalties: Most of the older surcharges were either reduced or eliminated due to the Province's delay in issuing the assessment, a legal principle known as "prescription."
Comparison with Previous Settlements
To demonstrate the fairness of this settlement, officials referenced a 2023 agreement with Dolomite Mining Corp. In that instance, an initial bill of P855.9 million was settled for P56.32 million, representing a recovery rate of approximately 6.5 percent. In contrast, the ALQC settlement recovers 17.36 percent of the original amount, nearly triple the previous recovery rate, highlighting a more favorable outcome for the Province.
Next Steps for Final Approval
The settlement is not yet finalized. The Provincial Board, under the leadership of Vice Governor Soco, will conduct committee hearings to thoroughly review the agreement. These hearings are intended to ensure that the settlement is equitable for taxpayers before granting final approval, ensuring transparency and accountability in the process.
