City Treasurer’s Office says only 66 out of 244 real estate firms paid dues

Thursday, February 23, 2012

AFTER examining the books of 244 real estate developers and dealers last year, the Cebu City Treasurer’s Office (CTO) found that only 66 companies have paid taxes.

CTO examination division chief Julieta Cuenca said the total tax assessment of the 244 real estate developers and dealers reached P101.7 million.

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But only P3.4 million have been paid or a shortfall of P98 million in business taxes, she said.

In the renewal of business taxes last month, the CTO assessed 1,115 business establishments but they have yet to pay their tax obligations.

Juanita Monina Paires, CTO tax mapping division chief, said City Hall may lose P68 million if these taxpayers do not pay.

City Treasurer Ofelia Oliva clarified, though, the CTO is running after tax-delinquent business establishments.

Judicial remedies

Oliva said she will undertake “administrative and judicial remedies” to collect taxes from delinquent taxpayers.

“I am asking only for their tax dues. I don’t want the City Government to enrich itself at the expense of the Cebuano taxpayers,” she said, adding that City Hall can only demand payment for what is due.

She said the CTO needs to intensify its tax collection so it can meet the target of P5.2 billion for this year.

She said the CTO sent demand letters to about 400 business establishments and 600 real property owners who failed to settle their tax dues.

Oliva said that if the business owners ignore their demand, she will refer their cases to the City Legal Office, which may result in the closure of their establishments.

She said that even if an establishment has been shut down, it would still owe taxes to City Hall.

Oliva said real property owners must pay taxes or face the risk that their properties will be auctioned off in April.

“We tried our best to be business-friendly but if they don’t pay their taxes then we also have to exercise our mandate,” Oliva said.

She said about P600 million in business taxes and more than P300 million in real property taxes have yet to be collected.

She admitted, though, that P404 million of the collectibles would come from colleges and universities that have filed cases in court to contest City Hall-imposed taxes.