2 Mandaue schools show willingness to pay taxes

CEBU, Philippines - Two schools in Mandaue City have expressed intention to secure business permits and pay the regulatory fees and taxes due the city government.

Their move came after City Legal Officer Regal Oliva revealed last week that of the 48 schools operating in the city 15 of these have failed to meet their obligations to the city government.

Oliva yesterday said that during a visit by Mayor Jonas Cortes and other officials yesterday to St. Louis School in barangay Maguikay, an official of the school promised to secure the required permits and pay whatever dues it has failed to pay.

"Once we see from their book of accounts that these funds are not used for educational purposes then that's the time we can say that they are actually a profitable institution and is subject to tax," Oliva said.

He said the school is willing to open its books to show proof of its claim.

Oliva said if the school has no proof that it is a non-stock , non profit institution, St. Louis would be compelled to pay the city P400,000, including penalties and surcharges. He said he has the prerogative to use a "presumptive level approach" on delinquent taxpayers.

Although the school has been operating a longtime ago, with Mayor Jonas Cortes as one of its alumni, under the law the city can only collect income taxes for the past five years of delinquency.

Aside from income taxes, regulatory fees for fire and sanitation and garbage are due the city.

The Sacred Heart School through Fr. Julian Hernando also wrote him a letter and claimed it is a non-stock, non-profit institution but the school has expressed willingness to pay "regulatory fees."

But Oliva said the city will look into the book of accounts of Sacred Heart to see if it is operating purely for educational purposes.

He said he has confirmed that the school's track and field charges P10 each for every person who uses it and a canteen operates inside the school.

Oliva reiterated that the city will open all the books of accounts of 15 schools in the city that have failed to pay taxes to the city government, claiming to be non-stock -non profit institutions.

But Oliva's office cannot hasten the work what with only three accountants to do the job. He said he would ask the Mayor for additional accountants.

He also said that if once these schools prove to have operated as non-stock, non-profit institutions, these will be exempted from whatever taxes but they have to pay for the regulatory fees of which they will have to pay annually.

Since they have already sent last October their first demand letter to the 15 schools, the city will again send a second demand letter soon, this time to ask the schools to pay their taxes and secure their business permit within 15 days. – THE FREEMAN