Section 8Sec./Art. 8

A new section designated as Section 151-C under Chapter VII, Title VI of the National Internal Revenue Code of 1997, as amended, is hereby inserted to read as follows:

"Section 151-C.

Ring-Fencing of Large Scale Metallic Mining Operations. - For purposes of reporting and paying the taxes under Sections 151-A and 151-B of this Code, a metallic mining contractor shall be treated as a separate taxable entity which respect to each mineral agreement or financial or technical assistance agreement that it holds and/or operates: Provided, That where a contractor has a valid and effective operating agreement, the mining operator shall be considered as a separable taxable entity for purposes of this section: Provided, further, That where there is more than one (1) valid mining operator under the same mineral agreement or financial technical assistance agreement, each mining operator shall be deemed a separate taxable entity for its respective mining operations under the agreement: Provided, finally, That where a mining operator conducts mining operations by virtue of a valid operating agreement with the mining contractor, it is understood that the mining operator is the one liable to pay the pertinent taxes imposed under this chapter.

As a separate taxable entity, each metallic mining contractor or operator shall be responsible for compliance with the corresponding reportorial and other requirements under applicable laws, rules, and regulations."