One Citilink denies tax delinquency

CEBU, Philippines - One Citilink Terminal Inc. yesterday presented documentary evidence to show that the company does not have any tax obligation to the city government contrary to the reported close to P11 million tax delinquencies.

Lawyer Ralph Sevilla, counsel of Citilink Terminal, it is not true that they have failed to pay the city of its 15 percent share of terminal income and accreditation fees since 2006.

In an executive session last Wednesday, Sevilla presented to the members of the city council two folders of documentary evidence, such as complete set of accreditations, project study of the corporation, lot title, official receipts, business permit, payment of the 15-percent gross terminal fees collected and receipts from 2003 to December 2013 and tax assessments.

"The documents submitted speak for itself," Sevilla told the council.

Also, in a letter dated December 11, One Citilink Terminal Inc. President Albert Lim said they already settled their dues to the city.

"Respectfully, One Citilink management is glad to inform you that we already settled our terminal accreditation fee CY 2003-2013. Just to set the record straight, ever since it started its operations, it has complied and settled all its obligations with the city government, " Lim said.

The terminal stands on 1.8-hectate private lot owned by a certain Mark Cancio, said Sevilla. The operation of the terminal started in 2003.

Sevilla said the city and Citilink have an existing contract and the Memorandum of Agreement (MOA) signed and entered by both parties will end next year. "We are still accredited with the city," he said.

The 15 percent share of the city of terminal income is "fixed by a contract not by law."

Lim pointed out that last November they have paid Cebu City of its 15-percent share from the actual count and monthly gross sales on terminal income for the month of  October 2013.

Lim added that they have started paying their yearly terminal accreditation for the period of  2013-2016.

But, City Treasurer  Diwa Cuevas explained that the said amount of tax delinquencies was computed based on the actual report of terminal collector Danilo Encarnacion.

"They made an actual counting of every vehicle going out the terminal not the ticket issued by Citilink," Cuevas said.

On September 29, 2006, she said her office sent a letter to One Citilink because the ticket receipts didn't coincide with the actual report of vehicles leaving the terminal.

"There was really a big difference like deterioration sa ticket over the actual counting. Maalkanse man gud ang city ani," she added.

Encarnacion allegedly said there was an "anomaly" in the issuance of tickets. The tickets are registered with the Bureau of Internal Revenue.

"The collector of the terminal is not giving the actual ticket, for instance Talisay-Tabunok route only one ticket was given instead of two tickets," he said. Every ticket is worth P10.

Encarnacion said that he has been insisting to the collector to release the official or actual ticket but the Citilink's collector allegedly refused. This forced Encarnacion to only record the plate numbers of vehicles for six years resulting in the said tax delinquencies of Citilink.

Sevilla insisted that the receipts and records will prove that they complied all their obligations to the city.

"The tickets are the best evidence we have over their (CTO) allegation that we have tax delinquencies. Ang 2003 tickets are in bodega, you can check it," he said.

"They started (in 2006) saying that we are not paying. Why not file a case against us to prove that we are complying with the law and our contract with the city," he challenged.  (FREEMAN)