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Tuesday, January 24, 2006
City mulls probe body v. tax evaders
By Ben O. Tesiorna
DAVAO CITY -- The City Government is planning to create a special investigation division to run after tax delinquents and evaders in Davao.
Councilor Diosdado Mahipus said the new office would be under the mayor's office and separate from other existing investigating agencies of the government.
Mahipus said this is to ensure that companies operating in the city pay their exact tax duties.
The councilor said he would sponsor a measure creating the division during the City Council session.
Mahipus said the city could easily raise its tax revenues from P2.3 billion to at least P3 billion if only big companies pay their correct tax duties.
The City Government is now investigating a tax evasion case allegedly involving four big fertilizer companies.
Shortchanged
Mahipus said the four companies, which he refused to identify, are making sales in the city at P806 million but are only declaring P3 million.
With the huge discrepancy, he said, the city could have easily collected from the four companies additional P20 million in tax dues.
"Ayon sa source namin yung tag P650 per bag na fertilizer ay dinedeclare lang ng company at P3 per bag. Malaking kawalan talaga yun for the city," Mahipus said. (Our source said they are declaring a P650 per bag fertilizer at only P3 per bag. That's a big loss in taxes to the city.)
"I feel that these big companies have always shortchanged the city," added Mahipus.
Business downgrade
Mahipus said that aside from the fertilizer companies, some pharmaceutical firms have also downgraded their business permits from being distributors to customer relations.
With the downgrade, he said, the companies have reduced their tax dues from P3 million a year to only P2,000 per year.
The councilor said they are now investigating these companies to ascertain their real tax obligations and demand payment.
Mahipus said if only these big companies were truthful in paying their tax obligations to the city, then an investigation would no longer have been needed.
"We are just asking them to pay their taxes correctly. We are not here to prosecute them," he said. (Sun.Star Davao/Sunnex)
(January 24, 2006 issue)
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