The Commission on Audit (COA) has ordered the municipality of Aroroy in Masbate to refund P1.09 million in overpaid local business taxes to Filminera Resources Corporation (FRC).

In a decision, the COA granted the petition of FRC for the refund of P1,099,877.70.

In its petition, FRC submitted the Masbate City regional trial court’s (RTC) Dec. 11, 2017 decision which ordered the municipality of Aroroy to refund the taxes paid by the firm.

Later, the RTC issued a writ of execution on July 8, 2020.

The FRC also submitted to the COA a certification from the town’s acting treasurer who attested that the firm has not been refunded of the taxes paid.

In its decision, the COA cited Section 2(B), Rule VIII of its 2009 Revised Rules of Procedure that claims against the government funds should be supported with complete documentation. In this case, FRC complied, it said.

The COA ruled: "In fine, this Commission is convinced that the above documents are sufficient to justify the payment. Further, the decision has already attained finality."

"As a rule, a final judgment may no longer be altered, amended, or modified, and any attempt on the part of the responsible agencies charged with the execution of a final judgment to insert, change, or add matters not clearly contemplated in the dispositive portion violates the rule on immutability of judgments," the decision also stated.

The five-page decision was signed by Chairperson Gamaliel A. Cordoba and Commissioners Mario G. Lipana and Douglas Michael N. Mallillin.

Based on its website, FRC said it is one of the country’s largest operating gold ventures and has played a significant role in Aroroy’s reclassification from 4th to 1st class municipality since 2007.