‘Illegal’ notary fees for biz permit renewal exposed

‘Illegal’ notary fees for biz permit renewal exposed
SunStar File
Published on

THE Cebu City Legal Office (CLO) allegedly engages in the “illegal practice” of requiring unnecessary notarization of business permit applications.

An anonymous “concerned taxpayer” submitted a document to SunStar Cebu dated Dec. 18, 2024 that said lawyers in the CLO are accepting payment for their notarial fees during office hours inside City Hall.

“There is no requirement under the law that business permit renewal applications must be notarized,” said the complainant, who further explained that under Article 171 of the Revised Penal Code, falsifying a business permit application (even if not notarized) is already a crime of falsification of public documents, which is punishable by imprisonment.

"As such, there is no more need to have it notarized if the purpose is to enjoin applicants to truthfully declare their sales and other statements during the application,” said the complainant.

The “concerned taxpayer” was prompted to complain after witnessing, along with other entrepreneurs, the long lines before the CLO lawyers, especially when the deadline period approaches.

SunStar Cebu tried to contact Santiago Ortiz Jr., CLO head, to comment on the matter, but to no avail.

Personal income

The complainant said the "unnecessary additional procedure" is tantamount to CLO lawyers earning personal income in a government transaction.

According to the complainant's computation, a business renewal applicant shells out P600 to pay for two required notarized documents (at P300 per notarial fee) -- the business renewal application form and the Cebu City Environment and Natural Resources Office (CCENRO) form.

And with at least 1,000 applications per day, the two lawyers assigned to the business permit renewal application end up handling around 500 applications each. That’s a personal income of P300,000 daily on average per lawyer, the complainant said.

The complainant said other entrepreneurs agree with the computation and the figures.

"Many of my fellow entrepreneurs would agree on this computation because we witness before our very eyes the long queues before the Cebu City Legal Office lawyers, especially during the time nearing the deadline period," said the complainant.

The City Government's official website lists the procedures and requirements for securing a business permit, including filling out an application form, procuring a Department of Trade and Industry certificate, financial documents, an old business permit, original barangay clearance with official receipt, certificate of property holdings if lessor, real property tax clearance if owner and contract of lease if renting.

Requirements must be completed for the application to be verified and released. These include a certified true copy of the business and employees, sanitary permit, fire safety inspection certificate, occupational permit, CCENRO certificate and joint inspection report, among others.

There is no mention of any notarization.

The complainant cited Republic Act (RA) 6713, or the Code of Conduct and Ethical Standards for Public Officials and Employees. It states that public officials and employees shall not solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment, loan or anything of monetary value from any person in the course of their official duties or in connection with any operation being regulated by, or any transaction which may be affected by the functions of their office.

Section 3 of RA 6713 also says that acts punishable by law include (b) directly or indirectly requesting or receiving any gift, present, share, percentage, or benefit for himself or any other person in connection with any contract or transaction between the government and any other party, (c) directly or indirectly requesting or receiving any gift or material benefit from any person obtaining any government permit or license, as well as (h) directly or indirectly having financial or pecuniary interest in any business, contract, or transaction in connection with which the public official intervenes or takes part in his official capacity.

The complainant hopes the City Government will put a stop to the illegal practice in time for the business permit renewal in January. /JPS

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