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Friday, March 31, 2006
3 fertilizer companies shortchange city
By Barbara Carla R. Quiero
DAVAO CITY -- Three agricultural companies are said to have shortchanged the Davao City by as much as P6.8-million in unpaid taxes and now they have to pay up, the City Treasurer's Office (CTO) said.
It was not clear, however, whether the three companies were among the four firms that City Councilor Diosdado Angelo Mahipus earlier said was illegally operating in the city.
Treasurer's office examiner Jesus M. Gentallan said Farmix Fertilizer Corporation started operating in Davao City since 2000 and Philippine Planters Fertilizers Corporation started operating in 2004. Both do not have business permits and have not been paying local business taxes.
The third company, Philippine Planters Consumer Inc., said to be an affiliate of Philippine Planters Fertilizers, is being rapped for understating its earnings.
A letter with a tax order of payment (TOP) has already been sent to each of the company last March 7, Gentallan said.
Farmix Fertilizer Corporation was ordered by the CTO to pay P1,452,210.85 million for years 2001-2002 while Philippine Planters Fertilizers Corporation was told to pay P1,753,871.98 for years 2003-2006.
The Philippine Planters Consumer Inc. was ordered to pay P3,674,605.83 million for years 2001-2006. The amount represents the taxes for the company's understated income.
"They have a business permit but they were found to have understated their gross sales and thus computation of their tax was also understated," Gentallan said.
He added that some of the documents of firm transactions that they have gathered during the examination do not coincide.
"The records we gathered from the Bureau of Customs also did not tally with their tax declaration. In 2005, they only declared P2 million of their P47 million income, that's why we billed them now," Gentallan said.
Business Tax and License Division Acting Chief Catalino O. Bolo said the three fertilizer firms have violated the Local Revenue Code of the city by not acquiring any business permit and understating their gross income.
"If you operate without permit, that will be unlawful pursuant to the revenue code of the city and they are considered to be doing business in the city," Bolo said in a separate interview.
Bolo said it would be unfair for the city if the firms will not pay their local taxes since they are doing business here.
"We insist that they pay their taxes and get a permit," he said.
Bolo, however, said the firms are given 60 days upon receipt of the demand letter to contest the amount stated in the notice in accordance with the Local Government Code.
"If they have questions or if they do not like the amount stated they could contest. If not, the amount becomes final and executory," he said.
City Treasurer Rodrigo S. Riola said he has already talked with one of the managers of the firms.
"They said they still have to discuss this with their main office in Manila. We also gave them some time to pay up because this involves a big amount," Riola said.
In a telephone call to the office of Philippine Planters Fertilizer, a lady employee who answered the phone advised this reporter to call again next week because the one in charge was still in Manila. She did not identify herself and said she is not authorized to give any statement in behalf of the company.
The two other companies, Philippine Planters Consumers and Farmix, cannot be found in the PLDT directory. (Sun.Star Davao/Sunnex)
(March 31, 2006 issue)
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