City set to auction properties with unpaid taxes

CEBU, Philippines – A total of 1,189 real properties, some of which are owned by prominent individuals and companies, are scheduled for auction within the month after their owners failed to pay taxes to the city amounting to P457 million.

Acting City Treasurer Renee Empaces told the City Council Wednesday that the owners of the properties continue to ignore the city’s demands to settle their tax obligations.

City’s records show that among those that fail to pay taxes for their properties are the Aznar Brothers Realty Company and Aznar Enterprises. The two reportedly have millions worth of tax obligations for their 302 properties.

Real properties include lands, buildings and machineries.

The auction is yet to be scheduled but Empaces said those who intend to participate may bring either cash or manager’s check to pay for the properties they would be interested to purchase.

Albeit no price tag, Empaces explained that a property in auction is considered sold to the city government once no one buys it at the end of the auction.

Councilor Jose Daluz proposed that the auction price of the properties be based on their assessed zonal value and not based on unpaid taxes. He said it would be unfair to the property owners if their properties will be auctioned based only on the amount of unpaid taxes.

Auctioning properties based on their zonal value is an old policy of the city. 

The council, however, agreed to refer Daluz’ proposal to the committees on laws and budget and finance for further study.

Meanwhile, the council’s committee on budget and finance will also evaluate the request of the heirs of Alex Jureidini to redeem the property auctioned in 2007.

Jereidini’s heirs represented by Bernadette Jureidini-Cabaral had claimed they were not properly informed of the auction, thus, they failed to defend their rights over the property.

Cabaral said they are now willing to pay the unpaid taxes amounting to P472,806 if only to retrieve the 1,307-square meter lot situated along Ramos Street in barangay Sta. Cruz.

The city treasurer’s office has already issued a certificate of sale on the property.

On the other hand, the budget and finance committee, together with the local finance committee composed of the city treasurer and budget officer, will also take up the complaint of Isuzu Cebu Inc. against the move of the city treasurer’s office to reclassify their establishment as a retailer from its original classification as dealer.

Chad Rodolfo Miel, counsel of Isuzu Cebu Inc., said the reclassification had increased the tax assessment to his client, which made the city treasurer’s office to demand for back taxes amounting to P4,247,912. – Rene U. Borromeo/JMO (THE FREEMAN)