Mandaue chasing erring businesses

CEBU, Philippines - The Mandaue City government has been inspecting business establishments to make sure they have business permits.

Five teams with five members each have been making the rounds since last December 1.

Assistant city treasurer Regal Oliva believes there are still a lot of establishments that operate without permits.

He said that for 2010, only 9,097 have acquired permits, which means that around 30% to 35 % of the establishments that do business in the city lack permits.

Oliva said in barangay Looc alone, only 207 establishments have permits while 301 have none.

Inspectors have found out that out of 28 establishments inspected in one day in Looc, 27 of these have no business permits, Oliva said.

Querubin Momongan, the IT consultant who also heads the city's tax mapping, said he hopes the inspection will be finished by the end of January 2011.

He said the inspection teams have already been to barangays Looc, Guizo, Centro, Alang-alang, and Mantuyong.

Oliva said the city treasurer's office is looking at P950 million to P980 million in collection this year.

"If you want basic services to be delivered at your doorsteps, please pay your taxes," Oliva said.

He said business firms that have stopped doing business without telling the city about it will still be taxed from the day they stopped up to the day they resume operation, Oliva said.

Oliva also said once tax verifiers found out that business establishments have failed to secure permits and have also failed to pay their regulatory fees to the city government, a demand letter will be sent to them and after the grace period had lapsed, they will be made to pay P2,500 per day as penalty.

Oliva said the inspection is being done now because the business permit application and renewal will start next month.

In April, a follow-up inspection will be conducted to examine if these business establishments have really declared their real earnings which are reflected in their gross receipts submitted to the city treasurer's office .

He said the inspection teams will not only inspect during the day but will make the rounds at night since some establishments operate one business during the day and operate a different one at night, but declare one type of business in their application for a business permit.  (FREEMAN)