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Thursday, January 19, 2006
City, Alta Vista want to settle case out of court
The Cebu City Government and the Alta Vista Golf and Country Club are willing to settle outside the courtroom their differences over the golf course’s closure.
Their lawyers have manifested willingness to settle the issue during a scheduled hearing yesterday before Regional Trial Court Judge Geraldine Faith Econg.
Alta Vista filed a civil suit against the City earlier this week for the closure of its golf course last Dec. 28.
The country club applied for a temporary restraining order on the closure order. The hearing has been reset for Jan. 26.
Believing that the closure order was unconstitutional, Alta Vista filed a case for injunction, prohibition and mandamus.
The order was issued after Alta Vista contested and refused to pay what it considers an illegal assessment of amusement taxes in 1998.
The City ordered the country club to pay P2,612,961.24 in amusement taxes, plus 25 percent penalty and 16 percent interest for the 1998.
Mayor Tomas Osmeña and City Treasurer Teresita Camarillo were included as respondents.
Alta Vista argued that as defined by the Local Government Code, amusement places include “theaters, cinemas, concert halls (and) circuses where one seeks admission to entertain oneself by seeing or viewing the show or performances.”
“Playing golf is a sports activity which does not involve seeing or viewing a show or performance. Thus, it is not among the taxable subject of amusement tax by local governments,” read Alta Vista’s petition.
Permits
Due to Alta Vista’s refusal to pay amusement taxes, the City refused to issue business permits for the country club from 2001 to 2005.
“There is nothing in the Local Government Code that allows the refusal of business permits and summary closure of a business as remedies for collection of local government taxes,” Alta Vista reasoned.
The country club also sought for the declaration of nullity of assessment and declaration of nullity of Sec. 42 of the Cebu City Tax Ordinance.
According to Alta Vista, the ordinance seeking amusement tax on golf courses based on gross receipts of admission fees is beyond the City’s taxing powers. (JGA)
For Bisaya stories from Cebu. Click here. (January 19, 2006 issue)
Write letter to the editor.Click here.
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