Lifting the Suspension of Payment of All Taxes, Duties, Fees, Imposts and Other Charges, Whether Direct Or Indirect, Due and Payable By Copper Mining Companies To the National and Local Governments Under Letter of Instructions No. 1416, Dated July 17, 1984

EXECUTIVE ORDER NO. 340 October 14, 1988

LIFTING THE SUSPENSION OF PAYMENT OF ALL TAXES, DUTIES, FEES, IMPOSTS AND OTHER CHARGES, WHETHER DIRECT OR INDIRECT, DUE AND PAYABLE BY COPPER MINING COMPANIES TO THE NATIONAL AND LOCAL GOVERNMENTS UNDER LETTER OF INSTRUCTIONS NO. 1416, DATED JULY 17, 1984

WHEREAS, Letter of Instructions (LOI) No. 1416, ordered and directed the suspension of payment of all taxes, duties, fees, imposts and other charges, whether direct or indirect, due and payable to the National and Local Governments by distressed copper mining companies;

WHEREAS, the immediate lifting of the suspension privilege of the copper mines under LOI No. 1416 is warranted considering that the present world market for copper has taken a sharp upturn;

WHEREAS, LOI No. 1416 provides that the repayment of suspended tax obligations shall be scheduled according to the individual capacity of each copper mining company; and

WHEREAS, a flexible and staggered system of repayment has been worked out and recommended by the appropriate bodies taking into consideration the financial capabilities...

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Summary of Executive Order No. 340

Lifting the Suspension of Payment of Taxes and Other Charges for Copper Mining Companies

- Background:
  - Letter of Instructions (LOI) No. 1416 ordered the suspension of payment of all taxes, duties, fees, and other charges payable to the national and local governments by distressed copper mining companies.
  - The suspension privilege is being lifted due to the upturn in the world copper market.
  - LOI No. 1416 provided for the repayment of suspended tax obligations based on each company's capacity.

Provisions:

- Immediate payment of all obligations incurred from May 1, 1988, which were eligible for suspension under LOI No. 1416. (Section 1)

- Payment of all obligations suspended by LOI No. 1416 and incurred from January 1, 1988, to April 30, 1988, in equal monthly installments up to December 31, 1988. (Section 2)

- Payment of all obligations suspended by LOI No. 1416 and incurred from October 31, 1987, to December 31, 1987, in equal monthly installments up to June 30, 1989. (Section 3)

- Payment of all obligations incurred before October 31, 1987, and suspended by LOI No. 1416, subject to a schedule of payment submitted by the copper mining companies within 15 days and approved by the Secretary of Finance upon the recommendation of the Secretary of Trade and Industry, considering each company's paying capacity. (Section 4)

- An Inter-Agency Committee composed of representatives from the Departments of Trade and Industry (Chairman), Finance, Environment and Natural Resources, and the National Tax Research Center shall work out a system of assistance/relief measures for the copper mining companies, considering their needs and problems. (Section 5)

- All orders, rules, and regulations in conflict or inconsistent with this Executive Order are modified or repealed accordingly. (Section 6)

- This Executive Order takes effect immediately. (Section 7)