THE management of the University of the Visayas (UV) is asking the Cebu City Government to waive some P2 million in tax delinquency.
In a letter, UV vice president for finance Jose Gullas asked the City to waive the P2,190,753.70, which represented the interests and penalties, out of the P2,203,487.03 total dues that City Treasurer’s Office (CTO) computed.
The first amount represented the interests and penalties that UV incurred for failing to pay the original amount that it owed to the City.
UV only wants to settle P12,733 out of P2,203,487.03 total dues because it represents the original unpaid amount of taxes.
The CTO issued an assessment notice to UV last July 28, 2015 requiring the university to pay the whole amount, prompting the management to send a letter-request.
Gullas said a review of their statements of account revealed that the unpaid balance, which was accumulated in 2011 yet, was just an oversight.
This is because, Gullas said, that the personnel in-charge in the processing and settlement of permits, taxes and licenses left the job without informing the school administration.
“The University of the Visayas, as one of your partner schools in the implementation of your scholarship program recognizes its responsibilities and obligations. In spite of the challenges we face to effect timely collections from our students, we manage to allocate funds to ensure we are able to pay applicable taxes due to the government on time to avoid the incurrence of interest and penalty charges,” he said.
Gullas said it will be hard for the school to pay the whole amount, considering that they are fully implementing the K-12 program, and the charges will agitate their financial condition.
In a letter to the City Council, City Treasurer Diwa Cuevas has recommended that the request will be given due consideration and favorably acted upon.
UV earlier wrote CTO on the matter but the request was denied since the office has no authority on the matter.
Diwa said that under the Local Government Code of 1991, only the Sangguniang Panlungsod has the power to grant tax exemption, tax incentive or tax relief through an approved ordinance.
The council has referred the matter to the City Legal Office for its comments and recommendations.