Cebu City to RTC: Cebu Doctors' University Hospital not tax exempt

CEBU, Philippines - Cebu City Assistant Treasurer Tessie Camarillo testified before the court yesterday and insisted that the City Government has the right to collect business taxes from the Cebu Doctor’s University Hospital because it is not a non-stock and non-profit corporation.

Camarillo told Regional Trial Court Judge Generosa Labra that based on the examination they conducted, they found that that the university is not exempted from paying taxes to the city.

“With the examination we made from 1997 up to 1999, we learned that CDU is a stock corporation, and subject to local tax… They did not pay the taxes for the tuition fees but in the other lines of business they had already paid,” Camarillo said.

The university went to court after negotiations failed on the issue of the City Government’s effort to collect taxes from them. (THE FREEMAN)