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Thursday, September 23, 2004
PPA agrees to pay tax arrears
By Raquel C. Bagnol

DAVAO City Treasurer Rodrigo S. Riola on Wednesday said the Philippine Ports Authority (PPA) has in principle agreed to settle their accounts with the city government.

But, he is still waiting for a representative of the Philippine Ports Authority (PPA) to make arrangements with his office regarding payment of its P75 million tax liabilities with the city government for the past ten years.

Riola said said PPA's tax liabilities include P65 million for the Sasa wharf properties and another P10 million for the Sta. Ana port properties.

He however added that although PPA through its manager Atty. Cris Santillan has already agreed to pay their tax liabilities, it is protesting the assessment of some of its properties.

"I am not sure what assessments and what properties they are going to protest, but the position of the city is pursuant to the provisions of the Local Government Code (Republic Act 7160), meaning they should pay their liabilities before a protest will be entertained," Riola said.

He said the City Assessors Office is the one who determines the taxable properties of the PPA and they will turn over the results to the CTO, who will use it as basis for their tax collection.

He said that under the Constitution, those that are exempted from taxes are those institutions that are directly and exclusively used for charitable, religious and educational purposes.

The City Council committee on finance early this week demanded the payment of P75 million from the management of the PPA for real property tax (RPT) liabilities to the city government from 1994 to 2004.

Councilor Diosdado Mahipus, committee chair, said the PPA management requested for the deferment of the collection of RPT to all PPA properties until full discussion with the Department of Finance and Bureau of Local Government Finance shall have been made.

Mahipus also said the PPA management claimed exemption from the payment of taxes, believing that government properties are exempted from collection of taxes.

(September 23, 2004 issue)
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