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Thursday, July 10, 2003
Dads question P.5M 'goodwill fee' for city
By May Anne Cacdac
DAVAO -- Arlin's Traveling Amusement, which operates a carnival in Burnham Park, said it has paid a "goodwill fee" of half a million pesos to the City Government as "an appeal that the payment of amusement taxes be reconsidered."
Rene Calantuan, Arlin's representative, told members of the City Council Wednesday that the goodwill fee was meant to cover improvements done by Arlin's in Burnham Park.
"Before our operation, we made an ocular inspection and decided that improvements be done first before we utilize the area."
However, Vice Mayor Betty Lourdes Tabanda stressed that based on the memorandum of agreement between the City and Arlin's, the area in Burnham Park utilized by the group for its circus operation was turned over to it in "good condition."
She also asked Calantuan to clarify if the so-called "goodwill fee" is meant to augment the payment of amusement taxes.
Calantuan explained that the payment of amusement taxes was not stipulated in the MOA between Arlin's and the City Government and reiterated that the company paid a "goodwill fee."
Councilor Delfin Balajadia questioned the payment of the "goodwill fee" through the City Treasurer's Office. "Why did you pay a goodwill fee and where did this goodwill fee go?"
Records submitted by City Treasurer Thelma Manaois to the council showed that the fee was paid in three installments and covered by the following official receipts: OR# 886259 for the P100,000 paid on March 19, 2003; OR# 886372 for P380,000 on April 11 and OR# 886407 for the remaining P20,000 paid 11 days after.
Manaois was supposed to appear before the council in its regular session Wednesday afternoon to answer queries on the P402,493.39 amusement taxes that Arlin's was supposed to pay the city.
The company, however, insisted that it is not obliged to pay amusement taxes because this is not stipulated in the MOA dated November 14, 2002, and considering that the City Government is a co-sponsor of the activity.
Manaois earlier said that although the stipulation for the payment of amusement taxes was not included in the MOA, there is a provision for it in Section 9 of City Tax Ordinance 2000-00.
The provision, she pointed out, imposes a 30 percent tax on the gross receipts from admission fees for events like circuses.
Balajadia suggested that the matter of the goodwill fee be taken up again with Arturo Bruno, head of Arlin's Traveling Amusement. Sun.Star Baguio
(July 10, 2003 issue)
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