City did not lose right to collect taxes due it

CEBU, Philippines- Cebu City did not absolutely lose its right to collect taxes from Perpetual Succour Hospital.

City Attorney Joseph Bernaldez yesterday clarified that the court only issued a preliminary injunction which means that the city is temporarily banned from demanding payments of the hospital’s unsettled dues while the main case is pending in court.

Bernaldez said the computation of their unpaid taxes shall continue until the court decides on the case.

“Wala magpasabot nga ang pag-issue og injunction sa husgado, the case is over. No,” Bernaldez said.

According to the certificate of delinquency issued by the City Treasurer’s Office to Perpetual Succour Hospital last April 13, the corporation owes the city some P62 million of business taxes from 2000 to 2009.

The city also warned to levy its property, which includes the land and the building, if they will refuse to settle their dues.

Insisting that they are a non-stock, non-profit corporation, PSH filed a petition, for issuance of a writ of preliminary injunction, before the Regional Trial Court, questioning the validity of the City’s Omnibus Tax Ordinance imposing taxes on propriety schools and hospitals.

In an order dated July 8, RTC Branch 7 Judge Simeon Dumdum Jr. granted a writ of preliminary injunction saying that “the court finds that Perpetual has a right that needs protection during the pendency of this case.”

The injunction, however, will only be effective once PSH is able to produce the P20 million bond.

“Ang purpose sa maong bond is pagpanubag sa danyos unya na ma-experience sa tawo o entity na imong gipugngan…ang danyos na mahiaguman sa tawo o entity nga gibawalan paglihok,” Bernaldez said.

He said that if PSH wins the case later, they can still claim back the said bond.

Bernaldez said that the city remains firm with its position that PSH, as well as other hospitals being pursued by the city to pay taxes, are stock and profit corporations.

“Sanglit usa man kini ka profit corporation, subject kini nga buhisan. Mao na atong position. Pero tungod kay duna ma’y injunction gi-issue,” he said.

Other hospitals that filed a case against the city on the imposition of taxes are Velez Hospital and Cebu Doctors Universities.