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Thursday, November 11, 2004
Ceneco owes city P154M in franchise tax
By Clara Mae Hortelano
THE Central Negros Electric Cooperative Inc. (Ceneco) owes the city government P154 million in franchise or real property tax from 1997 up to present.
Lilia Ursos, assistant city treasurer of Bacolod, said the total payable amount include permit tax, surcharges, community tax certificate or cedula and the corresponding penalties.
Ursos admitted the city and Ceneco through its counsel, Lawyer Enrique Tabino argued over the computation of franchise tax.
The City Treasurer's Office met with Tabino Tuesday.
Tabino told Sun.Star Bacolod the city's computation should have started on June 2000, the year when their conversion period from the Cooperative Development Authority (CDA) lapsed.
Ursos said they wrote CDA a letter requesting for Ceneco's CDA certification or registration certificate.
Under Republic Act 7115 electric cooperatives will not be taxed, provided they are CDA-registered coops, she said, adding, if otherwise the coops are taxable.
Moreover, she said the amount is negotiable between the city and Ceneco.
Should the city agree that the computation should start on June 2000, Ceneco will have to pay only P137 million.
"It is good to note that Ceneco signified that they are willing to pay the franchise tax," she added.
Tabino said though they are yet to compute the franchise tax they owe the city.
"But definitely it would be based on the annual gross income receipt of Ceneco," said Tabino.
(November 11, 2004 issue)
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