Some Manila-based concert promoters fail to pay tax

CEBU, Philippines - Some Manila-based concert promoters still fail to pay amusement taxes to the city, one of which is Manila Genesis Production that handled the concert of Gary Valenciano in Cebu City last year, said acting city treasurer Renee Empaces.

Empaces said that despite several letters of demand, Manila Genesis Production, with office address in Ortigas Avenue in Greenhills, San Juan City, still fails to pay the city P217,554.75 in amusement taxes.

Valenciano’s concert entitled “His Love” was held over a year ago on February 14, 2008 at the Waterfront Cebu City Hotel and Casino.

Empaces said they learned that the concert had a gross ticket sales of P1,381,300, which reportedly would enable the city to collect amusement taxes amounting to P138,130.

But because the amount was not paid immediately, the city would reportedly impose a 25 percent surcharge amounting to P34,532 and another P44,892 as interest.

The city tax ordinance provides that the promoters of concerts or shows are required to pay their amusement taxes immediately after the counting of admission tickets actually sold or right after the last show or presentation.

The ordinance further states that if payment of taxes or charges is made after the period fixed by the law, a 25 percent surcharge shall be imposed against the concert promoters, and an additional two percent interest of the unpaid tax obligation until such amount is fully paid.

Aside from Manila Genesis Production, Empaces said that the agency that handled the “Pop Icon Live in Cebu” concert last month, MJM Productions Inc., reportedly still has an unpaid obligation to the city amounting to P229,281 for amusement taxes.

Empaces, also the regional director of the Bureau of Local Government Finance, said the city would be compelled to file charges against the concert promoters should they continue to ignore the demand letters sent to them. – Rene U. Borromeo/JMO (THE FREEMAN)