Legal action sought to collect tax from terminal operator

CEBU, Philippines - Cebu City treasurer Diwa Cuevas has requested the city attorney to take the necessary legal action to collect the P2 million tax collectibles from North Consolidated Transport Terminal at the North Reclamation Area.

Cuevas's request was forwarded to the city council last January 15, informing the body about the terminal's Tax Delinquency Assessment amounting to P2,032,908.97 since 2011.

Attached to the request were copies of demand letters dated November 28, 2013 and July 25, 2013 addressed to Felix Villaceran, North Consolidated Transport Terminal permittee.

"We are respectfully requesting that the unpaid balances be settled within five days from the receipt hereof, otherwise we shall constrained to refer this matter to the city legal office for appropriate action," a Nov. 8 demand letter read.

"We informed the city attorney about the tax deficiencies of the terminal management for the office to act on it or whatever legal action ilang himuon or mag issue ba sila og final demand letter," Cuevas told The Freeman.

As provided for under Republic Act 7160 otherwise known as Local Government Code, the city government is mandated to avail of the "Civil remedies for the collection of local taxes, fees or charges and related surcharge and interest through administrative action or judicial action".

It also states that "the city has the option to close the establishment because issuance of the business permit is conditioned upon the payment of appropriate taxes."

However, Cuevas said the terminal management had already paid "partial" of the said amount early this month during the renewal of the business permit.

On July 25, 2013, Assistant City Treasurer-Operations Tessie Camarillo informed the terminal management, through a letter, that it incurred P1,920, 395.03 delinquent taxes inclusive the July 2013 penalty. The amount was broken down to P1, 855, 567. 77 of city's 15-percent share for CY 2008-2012 and Jan-March 2013, and annual accreditation fee amounting to P64, 827. 26.

To recall, on October 17, 2011, then City Attorney Joseph Bernaldez had sent a letter to the terminal management for the settlement of its tax delinquencies which was still amounting to P1, 404, 403. 43 during that time.

Prior to the October 17 letter, the office of the city treasurer sent two letters, such as Notice of Assessment dated March 2, 2011 and final demand letter dated July 5, 2011, respectively but these were all ignored.

This, Cuevas said resulted to "accumulation penalties and more delinquencies." — (FREEMAN)