Saying Manila’s database for delinquent business taxpayers “is in chaos,” a councilor wants local business owners to present proof of payment in the last five years or pay clearance charges before they can be granted new permits.
Councilor Bernie Ang, chair of the council’s committee on appropriations and author of draft Ordinance No. 7551, said one shop, for example, could be registered and granted 10 new business permits every year for the last 10 years without being questioned.
As a result, it would appear on paper that the city government could collect delinquent tax payments from multiple sources when in fact there is only one business establishment concerned. This bloats the amount of revenues that is supposed to come in, Ang said.
The councilor cited lessees in the 168 Mall and 999 Mall when asked to give examples.
“We have to put a stop to this,” he said. “We have to clear the records of the city.”
“The computer database is in chaos. There are a lot of delinquent taxpayers, but some receivables are actually not collectibles,” he added.
Approved on third reading on Tuesday, Ordinance No. 7551 sets the requirements and fees for the issuance of clearances for commercial spaces used for businesses. It would help the city government determine the real tenant of a commercial space, the author said.
Under the proposed measure, a business owner seeking a permit to operate in 2014 must first apply for a clearance from the City Treasurer’s Office indicating that his or her business has no outstanding tax liabilities. The applicant must also submit a lease contract for the commercial space.
If the Treasurer’s Office or Bureau of Permits could not verify the real tenant for the last five years, the applicant will have to pay clearance fees, which the ordinance sets at P4,000 a year or a total of P20,000 to make up for a five-year delinquency.
Ang said the city government is allowed to assess business tax payments in the last five years.—Erika Sauler