2 schools agree to settle tax obligations with city

CEBU, Philippines - Two private universities in Cebu City, which earlier claimed that they are not obliged to business pay taxes to the city, have agreed to peacefully settle the matter with the city government.

University of Cebu (UC) president Augusto Go said he and the officials of Cebu Institute of Technology (CIT) have agreed to pay in cash half of their business tax obligations to the city.

Go said the other half would be paid by granting scholarships to poor but deserving students in the city.

He said they are expected to sign next month a memorandum of agreements with Mayor Tomas Osmeña to amicably settle the issue.

Osmeña refused yet to comment on the issue because the terms and conditions of the proposed compromise agreements should be first approved by the City Council.

The council will be the one to give the mayor the authority to sign the documents.

The FREEMAN failed to reach CIT president Gregorio Escario for his comment on the compromise agreement.

But Councilor Arsenio Pacaña, dean of the CIT high school department, confirmed that there is an ongoing negotiation between officials of the city and CIT to settle the issue.

“Wala ko kahibalo og unsa na ang kalamboan sa negosasyon apan tingali posible nga tinuod kana kay suod kaayo sila si Gus Go ug si Mr. Escario,” Pacaña said.

If the compromise agreement will push through, it will be the city that will select students to be granted scholarship. The concerned schools will just deduct the tuition fees of the scholars from the city’s collectibles.

Osmeña had given a go signal to acting city treasurer Ofelia Oliva to initiate legal proceedings against schools and hospitals that did not pay business taxes to the city because of their claims that they are non-profit institutions.

City Hall records showed as of 2005, the University of Cebu has an unsettled business taxes of P87 million, Southwestern University, P33 million; Sacred Heart Hospital, P2 million; Cebu Velez General Hospital, P8 million; Cebu North General Hospital, P29 million; and Cebu Doctors’ University Hospital, P37 million. — Rene U. Borromeo/LPM (FREEMAN NEWS)