Lim, others face charges over tax exemption

Top city officials of Manila led by Mayor Alfredo Lim are facing criminal complaints before the Office of the Ombudsman for approving a city ordinance that exempted telecommunications giant Smart Communications from paying certain taxes.

The complaint was filed by former Manila Mayor Lito Atienza, who described the ordinance as “highway robbery in broad daylight.” Ten barangay (village) chairmen joined him in filing the case.

Aside from Lim, also facing criminal complaints are Vice Mayor Francisco “Isko Moreno” Domagoso, secretary to the mayor Rafael Garayblas and legal officer Renato de la Cruz.

Also included in the complaint are city councilors Marlon Lacson, Dr. J. Buenaventura, Ima Juson, Rod Lacsamana, Dennis Lacuna, Ernix Dionisio, Eunice Castro, Edward Tan, Jose Chua, Mon Morales, Joy Asuncion, Louie Chua, Mon Yupangco, Jo Quintos, Edward Maceda, Yul Servo, Re Fugoso, Bimbo Quintos, Nino de la Cruz, Cristy Isip, Philip Lacuna, Beth Rivera, Ric Ibay, Rafael Borromeo, Lou Veloso, Sheila Pangan, Ernesto Isip Jr., Casimiro Sison, Numero Lim, Bernardito Ang, DJ Bagatsing, Moises Lim and Ramon Robles.

The questioned ordinance exempted Smart from paying local franchise taxes and real property taxes on all machinery and equipment.

In their complaint, Atienza and the barangay officials said the tax exemption was illegal because local government units cannot grant tax exemptions.

The Local Government Code does not allow LGUs to exempt entities from paying real property taxes, they added.

They also said tax exemptions are only allowed during natural calamities, civil disturbance or general failure of crops, and that exemptions granted to a particular business should apply to similar businesses as well.

The complainants also contended that the ordinance was passed without any public hearing, based on records of the city council, and without the required voting by voice or any other method.

They also said that even if the ordinance did not bear Lim’s signature, he was still liable for violating the law because his alter-ego, Garayblas, signed the measure.

De la Cruz, however,  scoffed at the criminal complaint.

“Why include us? [Atienza] obviously doesn’t know the background. Precisely, we vetoed that ordinance. We did not approve it. Mayor [Alfredo] Lim was in America when it was approved by the city council and I had expressed that the Vice Mayor defer signing it but he still did,” De la Cruz pointed out.

He said that since it was proposed, Lim had opposed the ordinance.

He pointed out that Lim had also filed an appeal on May 26 to the Secretary of Justice questioning the constitutionality of the ordinance. The appeal is still pending and should be resolved within 60 days from its filing.

On May, 18 Lim had asked the court to declare the ordinance as unconstitutional and criticized Domagoso and the city council for passing it with grave abuse of discretion. With a report from Jaymee T. Gamil