City Treasurer to check books of south terminal

CEBU, Philippines - Armed with a letter of authority from the City Attorney’s Office (CAO), the City Treasurer’s Office (CTO) plans to inspect today the books of province-owned Cebu South Bus Terminal (CSBT).

CTO officer-in-charge Ofelia Oliva said the LOA will be delivered today by a team from her office to examine CSBT’s books of accounts and financial statements.

The CAO was supposed to send a notice of tax assessment and collection yesterday, but CTO could not assess their tax dues since the province has not been paying taxes.

The province has not even furnished the city of any record of their gross income since they began operating in 2001.

Oliva initially wrote the management of CSBT informing them that the city will inspect their books of accounts.

The CTO team that will go to CSBT will consist of six members.

City officials led by Acting Cebu City Mayor Michael Rama are now bent on collecting certain fees from the operations of CSBT even if the law exempts government units from paying taxes.

“In the case of the bus terminal operated by the province it is a different thing because they are earning revenues out of the proceeds from the lease paid by the stall holders.

Oliva and CAO officer-in-charge Joseph Bernaldez have agreed that even if the Capitol is exempted from the payment of business permit, but its officials should secure the permit from the Cebu City mayor’s office.

They must also pay other taxes because they are leasing the terminal to business entities.

Oliva said if the management of the south bus terminal would refuse to allow the personnel of the city treasurer’s office to inspect their books of accounts, what they can do is to make their own tax assessment.

Section 324 (a) of the Local Government Code provides that real property owned by the national government or any of its political subdivisions are exempted from the payment of taxes, “except when the beneficial use thereof has been granted, for consideration or otherwise, to a taxable person.”

Among the things the CTO will consider are the number of passengers who pay the P5 terminal fee, the number of buses that pay the P100 entrance fee, the number of tenants and their rental for the stalls. — Ferliza C. Contratisawith Elly Bolonos/NLQ (THE FREEMAN)