BIZ BUZZ: Running out of patience
Officials of a key business city in Metro Manila are reportedly exasperated over the stubborn refusal of a giant firm to pay billions of pesos in back taxes to the city government.
The firm, which operates a vital and very profitable enterprise, has an outstanding deficiency assessment of P3.24 billion covering the 2012 to 2015 period. Despite a slew of cases to stop the city’s assessment and collection of business taxes, the company failed to secure even one temporary restraining order or injunctive relief from the lower up to the appellate courts.
City officials are now reportedly exploring various means, including the extreme – but very probable option – of shutting down the conglomerate’s corporate headquarters, just to force it to pay what it owes the city.
The case stemmed from a 2018 tax assessment which the firm questioned by claiming that not all of its revenues should be attributable to their headquarters’ home city. However, when asked to provide a breakdown of revenues from each local government unit where it operates, the company refused.
In 2019, the P3-billion assessment became final due to the company’s failure to pay the tax even under protest. And since the city refused to renew the firm’s business permits, the company has been operating without a license for the past four years.
All eyes are on this long-running saga. Will the city finally take action against the firm? Or will it continue to give the company yet another free pass? Abangan!