Philippine Airlines to pay $3 million after tax evasion claims
Philippine Airlines announced reaching an agreement with the Philippine government over airport tax evasion claims. After being threatened to be banned from access to Manila Airport due to various unpaid fees, the airline agreed to pay the amount of $3 million, but claims its reason is to “manifest its trust and confidence in President Duterte's administration”.
According to the joint statement from the airline and the Philippines Department of Transportation, the resolution is reached on the Civil Aviation Authority (CAAP) of the Philippines and Manila International Airport Authority (MIAA) fees issue, after several months of “validation and reconciliation of accounts”.
The Department of Transportation accepted Philippine Airlines’ offer to pay in full the amount claimed by the Civil Aviation Authority and the Manila International Airport Authority. The airline also commits to keep all transactions updated and current with the CAAP and MIAA.
“One of the overriding reasons why PAL agreed to settle is to manifest its trust and confidence in President Duterte's administration”, the airline’s statement says. However, the Strait Times reminds that at the end of September Duterte threatened to cut the airline from the airport if it doesn’t pay its debts to the airport.