Court defers hearing of the Alta Vista case

The court has deferred the hearing of the civil case filed by a golf club against the city government, which threatens the firm with closure for its non-payment of amusement tax.

Regional Trial Court judge Geraldine Faith Econg rescheduled for January 26 the hearing of the application of Alta Vista Golf and Country Club for a temporary restraining order against the city government after both parties wanted to enter into an amicable settlement.

Econg was supposed to hear the application for TRO yesterday morning, but has decided to reset the hearing next week to give way to negotiations for an out-of-court settlement.

Alta Vista filed a petition for injunction, prohibition and mandamus against the city government and sought to nullify the closure order issued by Mayor Tomas Osmeña against it for not paying the P2.6-million amusement tax in 1998.

The club likewise sought to nullify Section 42 of the Cebu City Tax Ordinance, which was made by the mayor as basis in demanding the amusement tax.

The club, in its petition, said that Osmeña acted beyond the bounds of his power because it is not within the taxing power of the city government as far as amusement tax is concerned.

It cited a recent ruling of the Court of Appeals involving the Philippine Basketball Association in which the appellate court ruled that amusement places only refer to theaters and concert halls.

Section 131 of the Local Government Code also defines amusement places as theaters, cinemas, concert halls and circuses where one seeks admission for entertainment.

But the city government insisted on collecting amusement tax from Alta Vista, and because of the non-payment, City Hall denied the club a business permit since 2001.

The city government issued the closure order against the club on January 12. - Fred P. Languido