THE management of SM Prime Holdings Inc. (SMPHI) has paid the City P178.1 million in real property taxes (RPT) for three years last May 14, 2019, or a day after the midterm elections.
Lawyer Raul Bito-on, Officer In-Charge in the City Assessor’s Office, disclosed the development after his office conducted a reassessment of SM Seaside City Cebu last March.
Bito-on said the SMPHI management agreed to pay the taxes after the final assessment was sent to it, except for the P5.4 million assessment for the water supply system.
The P5.4 million assessment for the water supply system of SM Seaside City is under protest because it appeared that the amount was double its previous assessment.
Bito-on said the letter protest of SMPHI on the excess in the assessment for water supply system will be resolved by his office.
In 2016, SMPHI paid only P14 million in RPT for the building of SM Seaside City and did not declare any machinery which was supposed to include air-conditioning units, elevators and escalators, among others.
From P14 million, SMPHI’s dues to the City for RPT reached P59.4 million every year.
Out of the P59.4 million, P37.6 million is for the payment of taxes for the building and P21.8 million for the machinery.
The assessment made by the City Assessor’s Office has yet to include the tower of SM Seaside City Cebu since the developer has yet to secure a tax declaration.
The reassessment, Bito-on said, is in compliance with the directive of outgoing Mayor Tomas Osmeña after he announced in 2016 that SMPHI did not declare the right value of SM Seaside City Cebu.
Also in 2016, Osmeña filed criminal charges against four officials of SMPHI after he ordered a thorough assessment of the tax declaration of SM Seaside City Cebu, which declared a fair market value of P1,337,381,140.
The proper tax obligations of SMPHI for 2016 alone should have been about P37 million, but it paid only P14 million, for an underpayment of tax of about P23 million, Osmeña earlier said.
Mayor-elect Edgardo Labella welcomed the move of the City Assessor’s Office.
Once he assumes office, Labella said he will form a committee to go over the City’s RPT because he believes several business establishments may have underdeclared their properties. (From PAC of SuperBalita Cebu, RVC)