THE Cebu City Government will pursue the collection of P380.7 million in tax liabilities of two hospitals and a school.
Based on Cebu City Treasurer’s Office (CTO) records, the Cebu Doctors’ University Hospital (CDUH) has tax liabilities reaching P314.7 million, broken down as P308.2 million from year 2000 and P6.5 million in interest from 2016 to 2018.
In addition, the Cebu North General Hospital Inc. has liabilities of P18.7 million and Cebu Doctors’ College Inc., P47.39 million.
Acting City Treasurer Arlene Rentuza’s report to the City Council said these are their liabilities as of August 2019. Her report was to answer the resolution of Councilor Nestor Archival Sr. on Sept. 3, 2019 for information on these liabilities.
Councilor Raymond Garcia, chairman of the Council committee on budget and finance, had asked if the City has the legal grounds to collect.
“We will collect provided we have legal basis because the Cebu Doctors’ has questioned us on our legal grounds,” Garcia said. But, Garcia added, pursuant to the Local Government Code, and because he trusts the CTO assessment, the City will collect. “I trust the assessment of our City Treasurer’s Office. So, we will really collect that amount,” he said.
The CTO examination from 1997 to 1999 showed that the CDUH is not exempt from paying taxes to the City.
In 2010, the university raised to the court the question of its tax liaibilities after its negotiations with the City failed.
SunStar Cebu tried to reach Cebu Doctors’ Hospital’s counsel, Cornelio Mercado, for comment but calls were not answered. (PAC of Superbalita Cebu)