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Friday, January 20, 2006
Council to probe 4 agri firms not paying taxes
By Barbara Carla R. Quiero
Four multinational agricultural companies operating in Davao City that are allegedly not paying their business taxes should watch out as the City Council is set to investigate their business affairs.
City Councilor Bonifacio E. Militar urged Councilor Diosdado A. Mahipus, during the plenary session, to furnish him a copy of the letter from a "concerned citizen" containing the names of the four agri-businesses, which have been transacting business in the city but are not paying their local taxes, so he can start the investigation.
The letter said the companies, which are allegedly owned by Filipino Chinese businessmen, are not paying their taxes because they claim they are only holding office and do not have a warehouse. They added they are already paying their business taxes in Manila.
"With the regulation of the tax code, they cannot claim that as defense because we have the wholesalers tax and the retailers tax already," said Militar, chair of the committee on finance.
Apart from Mahipus, Councilors Leonardo R. Avila, Emmanuel D. Galicia, and Pilar C. Braga said they also received a copy of the same letter.
Mahipus said the city could be loosing more than P24 million a year from just one agricultural firm that is not paying their taxes.
"Ang uban man gud sa ila gi-understate ilang sales," Mahipus said.
He earlier said the firms have not even complied with the requirements of the local government for business establishments to operate in the city.
"We will really require them to pay with all the penalties and charges," he added.
Mahipus, however, said he still cannot reveal the names yet to the public. The firms still have their legal rights, he said.
Meanwhile, he urge the executive department to form an investigation division to handle cases of business firms not paying their local taxes.
Business Bureau chief Jhopee A. Agustin, meanwhile, said their office is willing to cooperate in the investigation.
"If they are not paying their taxes, we should help in trying to determine who they are," Agustin said.
She added that they are also doing monitoring of business establishments especially those receiving complaints.
It can be recalled that the Regional Trial Court ruled that Procter and Gamble, which claims to just be operating a liaison office here and should thus not be obliged to pay sales taxes, has been ordered to pay sales tax to the city retroactive 2001, amounting to more than P17 million.
(January 20, 2006 issue)
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