Makati has settled tax obligations – Binay

Makati Mayor Jejomar Binay said yesterday the city government has paid all its tax obligations to the Bureau of Internal Revenue (BIR).

"The city government has been very faithfully remitting its obligations to the BIR. Our records show that we do not have any liabilities," Binay said.

He said he was surprised when the BIR issued a demand letter to the city. Binay claimed it was Finance Secretary Margarito Teves himself who assured city officials December last year that a meeting would be called to reconcile the apparently conflicting records.

In a letter to BIR Commissioner Jose Mario Buñag last April 18, Binay reminded him of the meeting with Teves on Dec. 28 last year, in which they agreed to set a second meeting to finalize matters. Binay also wrote that he hoped Buñag "will consider pushing through with the meeting as previously agreed upon."

Binay also described as ridiculous reports that the BIR would garnish his properties if the city government fails to settle its supposed obligation.

"There is no joint and solidary obligation. You do not garnish the private property of a public official if the government agency he heads fails to settle its alleged obligations," he said.

Binay also said Lakas congressional bet Oscar Ibay was using the issue to boost his floundering campaign.

"The claim that the demand letter reinforces the claim of Ibay is far-fetched. The issue we are resolving is the difference in the BIR and city government records. The claim of non-remittance is irresponsible and politically motivated," he stressed.

Binay said the alleged sender of the demand letter, BIR chief for Withholding Tax Division Marivic Galban, has denied claims that Makati has not remitted its obligations, and was quoted in news reports as saying that to her knowledge, "Makati has already settled its unremitted tax obligations recently." – Rhodina Villanueva