Of penalties and surcharges: Former hotel owners hit denial of request for waiver

The former owners of Cebu Plaza Hotel said the city government's decision denying their request for a waiver of the penalties and surcharges imposed on them by the City Treasurer's Office for their alleged failure to pay real property taxes in 2001 and 2002 "was based on the wrong assumption."

In her July 21 letter addressed to acting city treasurer Tessie Camarillo, Arlene de Guzman of the Pathfinder Holdings Philippines, Inc. denied that their protest letter was filed beyond the 30-day prescription period.

De Guzman pointed out they had been writing Camarillo long before they made their payments to the city.

She said that to formalize their complaint, they even filed with Camarillo's office a protest letter on January 13, which fell within the 30-day requisite period.

"We maintain that we have not been properly informed of the increase in assessment and that you have continuously received our payment without citing any discrepancy," de Guzman's letter stated. She said officials of the City Assessor's Office also acknowledged the fact that no formal notice was sent to their office and what transpired was mere verbal notification through one of their former employees.

And even if there was indeed a verbal notification, de Guzman emphasized that this does not qualify as compliance with the 1991 Local Government Code, which mandates a formal written notice to a taxpayer.

"This is further emphasized by the fact that revised tax declarations, which were issued by the City Assessor's Office reflecting the new assessments do not bear any signed or received acknowledgement by our office," the letter said.

According to de Guzman, their company already paid about P46,085 in basic delinquent tax and another P220,841 last January 13 to the City Treasurer's Office. In view of this, de Guzman said they would continue to appeal to the city government until their request is resolved.

In April, then acting city attorney Evangeline Abatayo said the Pathfinder Holdings officials should prove their claim that the city failed to inform them of the revised property tax assessment.

The Pathfinder Holdings had already written the city government several times for condonation, explaining that it was not informed on the assessment increases of Cebu Plaza's properties and its outstanding obligations.

Camarillo said she already wrote Ernesto Quimba, Cebu Plaza Hotel comptroller, in June 2004 to deny the hotel's request not to be charged with the interest and penalties for the late payment of additional assessment of its real properties.- Cristina C. Birondo