Lapu says no to tax settlement offer of MCIA

The local government of Lapu-Lapu City has thumbed down the proposed tax settlement offered by the management of the Mactan Cebu International Airport (MCIA).

Last July 4, MCIA General Manager Nigel Paul Villarete presented a proposed Memorandum of Agreement (MOA) with the city government for the settlement of the real estate tax obligations of the international airport by P23 million and an additional P10 million in the form of corporate social responsibility.

Mayor Paz Radaza said the proposal of the MCIA is a very small fraction of the P1.5 billion real estate taxes it owes the local government and another P200 from business establishments in the facility.

In its audit report for 2012, the Commission on Audit has mandated the city government to collect the accumulated P1.7 billion taxes from the MCIA and private businesses in the airport.

These include P982.12 million in unpaid real property taxes from 1992 to 2012; P582 million in accumulated penalties; and P217.22 million in taxes from the commercial establishments functioning in the airport from 1998 to 2012.

Villarete had told Radaza that if they agree to the proposed MOA, he will present it for approval by the MCIA board.

Cebu Gov. Hilario “Junjun” Davide who attended the MCIA board meeting last July 6 told Cebu Daily News that the proposed MOA was not discussed in their meeting.

Radaza however is not closing its door for a settlement. She said they will make a written reply to the proposed MOA.

She however made it clear that the city government is not abandoning its real estate tax collection on MCIA for the whole airport property of about 800 hectares.

In its proposal, the MCIA has computed and is willing to pay the Real Property Tax for its commercial lots or those leased to private parties for the period 2004-2013 amounted to P12,407,336.64, Special Education Fund (SEG) P8, 271,560.80 and Socialized Housing for P2,933,643.12, a total of P23,612,540.56.

If the city government agrees to the proposal, it will be required to sign a quit-claim, release and discharge and wave any and all action against MCIA. This could mean dropping the tax collection case which is now in the Court of Appeals.

But Radaza said city government is not waiving any claims for real property tax against MCIA.