|
Tuesday, June 07, 2005
City wants time to rebut ad company's refusal to pay tax
By Raquel C. Bagnol
AFTER being granted a total of 15 days extension to answer the motion for Tax exemption filed by the Procter and Gamble Philippines, Incorporated (PGI), the City Government of Davao has asked the Regional Trial Court (RTC) for another 15 days as final extension for them to file their memorandum.
The City Government represented by the city legal officer filed the motion for final extension of time to file memorandum dated May 31 before Judge Renato A. Fuentes of the RTC Branch 17 for them to present the documents which will support their position and will enlighten the court on the exact amount of taxes due to the government based on the Distribution Agreement between the PGI and the distributors.
The city legal office said that the documentary evidences were not yet available as of May 31, the day the additional five-day extension granted to them was supposed to end.
The government further said that it is in the spirit of justice and fair play and it is not intended to delay court proceedings.
Fuentes earlier ordered the City Government to answer the civil suit within 10 days. The 10-day period ended on May 26 so they asked for another five days extension that was also granted.
PGI and its distribution arm Procter and Gamble Distribution, Incorporated (PGDI) filed the complaint against Davao City Government to seek an exemption from their pending payable taxes amounting to P16,505,765 from 1996 until 2005.
PGI, which is engaged in the manufacture of personal care products like shampoo, soaps and detergents, among others, earlier filed a 28-page complaint and claimed it is exempted from paying the taxes since their products are no longer manufactured in Davao City since 1996.
PGI further said the claim of the City Treasurer's Office (CTO) that PGI is liable for manufacturer's tax since Davao residents are patronizing its products is not right.
PGI added its head office in Makati City is the one liable for paying manufacturer's tax. The company also said since 1996, the sales activity of their products was delegated to their sister company, which is the PGDI.
PGI further said that CTO head Rodrigo Roila erred when he asked them to pay the taxes through a demand letter on November 8, 2004 and on March 29, 2005.
PGI said although they have a satellite office in Davao City, they are not conducting sales but just use the office for purposes of sales monitoring.
Besides, PGI claimed it had requested the CTO to cancel their business permit in 1996, but CTO allegedly did not respond to the request.
For Bisaya stories from Davao. Click here. (June 7, 2005 issue)
Write letter to the editor.Click here.
Join the Sun.Star message board.Click here. |
|
[return to top]
[home]
[network page]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
SUPERBALITA
WEEKEND
|
