CEBU, Philippines — Entertainment producer Jhett Tolentino recently took to social media to express his disappointment in Cebu City, where he, alongside FRONTROW Entertainment, took David Henry Hwang’s “M. Butterfly” as part of their nationwide tour.
On his Facebook page, the Grammy and Tony award winner wrote about how Cebu City was a “complete let-down,” how they got “bullied and harassed” by the Cebu City Treasurer’s Office to pay the amusement tax despite donating to charity and having photos of their reports on ticket sales, merchandise sales, and charitable donations.
Tolentino first spoke to the audience about the fines despite being a non-profit event during the curtain call of the play’s opening night on March 14 at the Centerstage of SM Seaside City Cebu.
In an interview with The FREEMAN, Tolentino said that they had hoped for a tax exemption owing to the fact that they were donating P500, 000 to charity and that the event was essentially non-profit since their sales weren’t even compensating for their overall production cost.
Tolentino said he had written a letter to the city mayor regarding the exemption in February, but when they arrived in Cebu early this month, they had no idea of their appeal’s status quo.
It was already show time for “M. Butterfly,” yet there was still no word on their request.
To his surprise, he was met with representatives from the Treasurer’s Office on opening night who were then present throughout their Cebu leg until March 17.
“And then show time came, we were slapped with a fine because we didn’t have the tax exemption. That’s why they were here every day, hounding us with the tickets which to me, is a little bit intrusive,” said Tolentino, irked to have their tickets counted despite having their own staff for that.
Tolentino said he had expressed his sentiments on a “kinder, gentler and classier way” in a meeting with Cebu City Councilor Margot Osmeña.
Turns out the Cebu City Council had granted “M. Butterfly” a 50 percent exemption on the amusement tax which is 10 percent of the gross ticket sales.
However, the City Treasurer’s Office could not act on it since they had not received a hard copy of the approved resolution and could not take Tolentino’s word for it.
While Tolentino understands that the city has to make money, he hoped there would have been some consideration given that they were donating P500,000 (P250, 000 each) to the Children of Cebu Foundation and the Arts Council of Cebu Foundation.
“I feel bad for Cebuanos because they have such a great place to host the performing arts but the government red tape is very discouraging. Perhaps that’s why the performing arts there is not really flourishing (according to some locals),” Tolentino wrote on Facebook.
“Upside is, I met a few pretty arts savvy people whom I connected with and who are as passionate as I am. I value those very few Cebuanos!”
Tolentino stressed to The FREEMAN that he did not mean to insult or disrespect Cebuanos. He was just particularly citing the practice of the City Treasurer’s Office.
He said they were here for the Cebuanos, thanking those who supported and watched “M. Butterfly.” He clarified that he is speaking on a personal level and not as a representative of FRONTROW Entertainment.
“The feeling that you are being policed every show is really unbecoming. I’m so sorry but I never experienced that in any place I’ve produced,” Tolentino quipped.
He paid the city P75,903.80 in amusement taxes out of his own pocket. But to make a point, he paid the amount in coins, saying that as far as he is concerned, coins are still accepted in this country.
Tolentino, who thinks the computation is unfair, said he didn’t want to leave Cebu City with any debt and thus paid the fine.
He said he will not be bringing shows to Cebu any time soon.
“I have a lot of shows to put on the way. But here in Cebu, I’m not so keen in bringing any shows here. It’s discouraging. I feel bad for Cebuanos. I personally do not want to bring productions here because of the red tape. The city should be friendly enough in welcoming performing arts if they support it and if they want Cebu to see world-class productions.”
Just doing their job
Cebu City Treasurer Arlene Rentuza told The FREEMAN that Tolentino is entitled to expressing his sentiments and doesn’t feel the need to add anything to fuel the conflict. However, she explained that the City Treasurer’s Office was merely doing its job.
Rentuza said that the amusement tax is based on gross receipts (total amounts received without subtracting any costs or expenses) and not the net income (income minus cost and expenses). And so, “M. Butterfly” still was subject to the collection of amusement tax, said Rentuza.
Donating to charity also does not guarantee a hundred percent amusement tax exemption.
“Besides, they already enjoyed an exemption. The exemption is not made by the Treasurer’s Office. It’s the council that decides. Nothing in the ordinance says that if you donate, that is basis for exemption. It depends on the council’s deliberation. As lawmakers, it was their prerogative if they would grant the exemption or not,” Rentuza said.
She pointed out that the council must already have put into consideration the production’s charity donation. Rentuza added that it was their job to execute and honor what the resolution says, which granted half amusement tax exemption for the “M. Butterfly” staging.
As for the execution itself, Rentuza explained that this was settled during Tolentino’s meeting with Osmeña and representatives from the City Treasurer’s Office.
Rentuza said that it was protocol to assign staff at events since the actual tickets are the basis for the tax computation. Otherwise, how else would their office be able to verify the ticket sales report?
“I do not know about the bullying. Perhaps it was their perception of the appearance of the staff. They were not bullied. There are watchers in all the productions that have come here. Even movie theatres have watchers from the City Treasurer’s Office. How is that bullying?” Rentuza said.
She also mentioned Tolentino’s payment in coins, inferring that it seemed like bullying from their end.
“He paid in coins. Why would he pay in coins? Is that what their patrons paid them with? But that’s our work. We accept it. We’re only doing our jobs here at the CTO.”
To avoid a similar experience, Rentuza reminded that it should be basic knowledge for event producers and organizers to be mindful of certain laws, as not all places practice the same tax code. Producers should inform themselves about what it would take to hold events in particular places.
“Know the rules of the game. When you go to Rome, act like a Roman. Ask about the law so you won’t be questioned,” Rentuza said.
“That’s what we’ve been doing. There have been many world-class productions but they didn’t feel the same way because they understand how the laws here work.”