Thursday, August 30, 2007 Refund for ‘overpaid’ taxes sought
THE Mactan-Cebu International Airport Authority (MCIAA) demands that Lapu-Lapu City return the P181 million in taxes that it “overpaid” the local government unit through the years.
But instead of answering the two demand letters that MCIAA sent, the Lapu-Lapu City Government is fighting back by issuing a notice of its intention to collect P87 million in business taxes from the airport authority.
This was disclosed by Gov. Gwendolyn Garcia, a member of the MCIAA board, after their meeting yesterday morning.
She said the board members also discussed Lapu-Lapu City’s move not only to have a seat at the board, but to strip the governor of authority to recommend four members from the private sector.
Lapu-Lapu’s stand is contained in a resolution that was sent to the President and when asked for her comment on the City’s stand, Garcia said her opinion would be, “What?”
It is Lapu-Lapu’s contention that they must have a seat in the board, considering that they are the airport’s host.
But Garcia said the operative word is “international.” The board plans to invite “persons who may give more information on the issue.”
They would like to know whether Parañaque City has a seat at the Manila International Airport Authority (MIAA).
For years now, MCIAA and Lapu-Lapu City tangled over the issue on real property taxes.
The Supreme Court, however, ruled on the case Parañaque City filed against MIAA that airport properties are not subject to it being a National Government instrumentality.
Based on that ruling, Garcia said the MCIAA made a review of what they have paid Lapu-Lapu City and after a re-computation, concluded that they overpaid by P181 million.
“On the other hand, they sent us a notice collecting P87 million in business taxes but we are not going to pay that,” she said.
It is the board’s position that the Lapu-Lapu City Government “erred” in its interpretation.
The various concessionaires inside the airport are paying business taxes to the City.
“We are now contemplating our next option, in the same way I am contemplating why they are thinking of making me a non-entity in the board,” she said.
Rep. Raul del Mar (Cebu City, north district) had filed an amendment to the MCIAA Charter so Lapu-Lapu City will be represented at the airport’s governing board. (JPM)
