City has no ground to withhold branch’s business permit: BDO | SunStar

City has no ground to withhold branch’s business permit: BDO

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City has no ground to withhold branch’s business permit: BDO

Tuesday, February 07, 2017

CEBU. Banco de Oro’s branches in Cebu are threatened to be closed by Mayor Tomas Osmeña, who said they failed to renew their business permits. The bank disagrees. (Amper Campaña)

THE management of Banco de Oro (BDO) Unibank said that the Cebu City Government has no ground to withhold or revoke the business permit of its Magallanes-Plaridel branch.

While this developed, the bank assured their clients that they’re finding alternative locations following the pronouncement of Mayor Tomas Osmeña that 26 of their branches in the city might be closed.

Osmeña said the branches failed to renew their business permits.

In their reply to the second show cause order issued by Osmeña, Joseph Lao, manager of BDO Magallanes-Plaridel branch, said they have “made faithful and truthful representation in its 2016 business permit applications.

Lao said they’re consistently compliant with all the applicable taxation laws, including the City Tax Ordinance.

He said not all gross receipts of a bank are subject to local taxes and fees sincethat is only limited to interest, commissions and discounts.

“Moreover, the deposits received by a bank from its clients are not gross receipts. These are income of the bank, but are loans for which the bank pays interest,” he said.

As to the threatened closure of their 26 branches, BDO apologized to their clients for the inconvenience.

“We have complied with the requirements, but despite that, the City Government has refused to accept payments for local taxes and fees, and issue the permits contrary to what they did in the past,” read a portion of their statement.

BDO said the matter is only a local issue and has no bearing on the operation of the entire bank.

Earlier, Osmeña filed a criminal complaint against the executives and board of directors of the BDO, Magallanes-Plaridel Branch over the alleged under-declared and falsified declaration of gross sales.

Last Saturday, the mayor also announced that the City might order the closure of the 26 branches of BDO in the city whose permits have yet to be renewed.

At present, BDO branches in the city are operating without business permits, which means that they have no authority to transact business, Osmeña said.

Published in the Sun.Star Cebu newspaper on February 07, 2017.

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