CEBU, Philippines - The Cebu City Council last week authorized Mayor Michael Rama to enter into a compromise agreement with the University of the Visayas (UV), which will allow the school to pay its taxes using a different mode of payment.
Under the deal, UV will be allowed to pay the City fifty percent in cash and fifty percent in the form of scholarship programs to indigent city students.
UV owes the City a total of P7,569,439.78 for both the Colon Main Campus and the Pardo Campus for the period 2007 to 2010.
UV earlier refused to pay its taxes, claiming that the institution is non-stock and non-profit. UV was just one of the schools that filed a complaint before the court to contest City Ordinance CXIII or the City’s Omnibus Tax Code.
For their refusal to pay their taxes, the City Treasurer’s Office levied five of its properties.
But recently, “in the spirit of mutual cooperation especially in the scholarship aspect for the benefit of poor deserving students,” UV agreed to amicably settle its dues.
UV proposed to enter into an agreement similar to the Memorandum of Agreement entered into by the city with the University of Cebu and Cebu Institute of Technology. The draft of the MOA with UV has already been reviewed by the City Legal Office which recommended for its signing and Council ratification.
The committee on laws also rendered its favorable recommendation for the approval of the MOA.
Under the MOA, UV agreed that starting next year, the basis for computing the business taxes of its two campuses shall be the audited interim financial statement of each campus as of December 31 of the immediately preceding year.
UV also agreed to secure a mayor’s permit every year and pay business taxes for its income as a real estate lessor, which shall be computed separately from its business taxes under the omnibus tax code. (FREEMAN)