Osmeña getting impatient with delinquent taxpayers

The non-issuance of a business permit to a pharmaceutical firm by the city government may be the signal of a more intense drive against delinquent taxpayers.

Mayor Tomas Osmeña yesterday said he is bent on changing the manner by which the city treasurer's office deals with business entities. He has observed that more time is being spent on reviewing the books of those allegedly not having paid taxes.

The mayor said he will sit with the city treasurer to get a "clearer overview" of the issue against International Pharmaceuticals Incorporated which is opposing the city's move to assess 70 percent of the sales made by the firm's other branches outside Cebu City.

IPI's stand to refuse the 70 percent is based on an opinion by the Bureau of Local Government Finance of the Department of Finance, which said, "the LGU where the head office and factory are situated will not have a share in the sales or receipts made by the branches or sales offices." IPI intends to ask the court to gather all local government units involved in the issue to reconcile among themselves who can claim a particular amount of sales tax. A possible legal move is to file an inter-pleader case that allows parties to litigate among themselves, said IPI lawyer Manuel Espina.

IPI is the manufacturer of well-known products such as Casino Ethyl Alcohol, Efficascent Oil, Bioderm, and Omega Pain Killer. - Joeberth M. Ocao