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Saturday, June 18, 2005
Procter and Gamble wants to settle on tax charges
By Raquel C. Bagnol
PROCTER and Gamble Philippines Inc. (PGI) has asked a lower court to hold the proceedings on the civil case filed by the Davao City Government for tax evasion to give the company the chance to settle the matter out of court.
In a four-page motion dated June 16, PGI looked into exploring the possibility of settling amicably with the City Government their tax liabilities amounting to P16,505,765 from 1996 until 2005.
PGI stated that under the law, "the court shall endeavor to persuade the litigants in a civil case to agree upon some fair compromise," and added that tax actions fell under this jurisdiction.
The Regional Trial Court earlier granted a total of 25 days extension to the City Government to answer the motion for tax exemption filed by PGI 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 government further said it is in the spirit of justice and fair play and it is not intended to delay court proceedings.
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.
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 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. RCB
For Bisaya stories from Davao. Click here. (June 18, 2005 issue)
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