City wants to tax pre-schools

CEBU, Philippines - After maintaining status quo and deferring its issuance of the Certificate of Tax Delinquency against some proprietary schools and hospitals, the Cebu City Treasurer’s Office is now eyeing collecting business taxes from preparatory schools in the city as well.

City Treasurer Ofelia Oliva said that she learned that a number of pre-schools in the city are operating in the manner of non-stock, non-profit institutions and has asked the inspection and examination division of her department to look at the status of these schools.

The city treasurer said that the amended tax ordinance of the city clearly states that proprietary schools have been reclassified as industries subject to taxation.

Oliva said she does not want to be accused of bias, thus she will implement the ordinance fairly and squarely.

“They should pay also aron dili ta maakusahan nga atong gipaburan ang uban unya atong gikontrahan pud ang uban,” Oliva said.

The city treasurer revealed that they will also serve a demand letter to these pre-schools afterwards and ask them to pay their tax dues.

If these schools will ignore the request, a final demand letter will follow before the issuance of a CTD together with the Warrant of Levy.

Once a property is levied by the city government, the city will then publish the asset for auction and eventually sell the property.

Oliva, however, made it clear that they do not want to reach such a situation that is why she is urging the proprietary schools and hospitals to pay their obligations.

CTO deferred the issuance of CTD to Cebu Doctor’s Hospital, Cebu Doctors’ University, Southwestern University, Cebu Institute of Technology, Sacred Heart Hospital, Cebu North General Hospital and Velez General Hospital.

This after the president of University of Cebu, Gus Go, assured the city that he can convince the owners of the said schools and hospitals to pay their dues.

Go promised to settle his own tax obligations amounting to millions of pesos after reaching a compromise agreement with the city government.

The city is reportedly willing to waive the unpaid business taxes of the proprietary schools and hospitals from 2000 to 2006.

In addition, the tax to be collected by the city is only three-fourths of one percent of the gross receipts in 2007, 2008, 2009 and for the coming years.

Oliva also said that they are gathering data for the issuance of assessment notice to the provincial government.

This is in relation to Capitol’s operation of the Cebu South Bus Terminal that the city also wants to tax.

CTO personnel wanted to check the books of accounts of the terminal but Capitol officials denied their request saying the city does not have the right to tax them. — Elly Bolonos/BRP   (FREEMAN NEWS)