MANDAUE City Hall plans to collect five years’ worth of unpaid business taxes incurred by the Cebu International Convention Center (CICC).
Acting City Treasurer Regal Oliva said the CICC had no business permit and didn’t pay its business taxes ever since it opened in 2007.
The center was built for the Association of Southeast Asian Nations (Asean) summit held in Cebu that year.
“We need to check their books for us to know their gross income. But how could we know? They have to prove it by opening their books,” Oliva said.
He said the CICC earned through the rental of their function rooms.
Oliva said the plenary hall rents for 130,000 per night.
If the CICC earns P2 million income in a year, he said the Mandaue City government can collect P200,000 to P300,000 in business taxes.
The CICC is one of 8,000 unregistered establishments while there are 7,000 registered establishments in Mandaue City.
Under the Local Government Code, establishments that fail to pay their taxes will be meted a 2 percent interest per month.
The local government can only stop imposing interest at 72 percent.
Oliva said even the Mandaue City government pays for rentals in CICC.
But as part of an agreement, the city government is entitled to a 50 percent discount.
Last January, personnel in charge of monitoring businesses in the city went to CICC and asked for their business permit, which the staff failed to produce.
They asked for forms but never returned, Oliva said.
Capitol consultant Rory Jon Sepulveda said they will wait for the demand letter from the Mandaue City government before issuing a statement.
If there’s no response after 15 days, Oliva said they will seek legal action.
Former Mandaue City mayor and now Provincial Board (PB) member Thadeo Ouano said the contract between the Mandaue City government and the Capitol is good for 99 years.
“In my time, we don’t donate lots since the Capitol is wealthy,” Ouano said. Reporter Dale G. Israel and Jucell Marie Cuyos