PHILLIPINES : LEXMARK ORDERED TO PAY PROPERTY TAXES

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Date: Wednesday April 27, 2011 07:44:54 am
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    PHILLIPINES : LEXMARK ORDERED TO PAY PROPERTY TAXES

    phillipines : Lexmark told to pay P4.4M tax dues
    The Cebu City government will still ask Lexmark Research Development Corp. to pay the P4.4 million worth of real property tax, that has remained unpaid since 2009.City Treasurer Ofelia Oliva said that Lexmark was still liable for real property taxes despite earlier claims of Lexmark that it was exempted from paying the tax.Oliva said that she would meet with the head of Lexmark next week to discuss the unpaid tax and threatened not to release the firm’s business permit unless Lexmark would pay the P4.4 million which is actually P3.4 million for the exact real property tax and P1 million for the interest.“If the City Ordinance (2016) will be changed, then I will not let them pay. But since there are no changes, then they will have to pay,” Oliva said in Cebuano.City Ordinance 2016 states that all of the business establishments within the ecozone are exempted from all taxes except the real property tax.Lexmark earlier cited a national law as the reason for their not paying the real property tax.R.A. No. 7916 states that except for real property taxes on land owned by developers, no taxes, local and national, shall be imposed on business establishments of operating within the ecozone”

    http://globalnation.inquirer.net/cebudailynews/enterprise/view/20110418-331870/Lexmark-Were-exempted-from-property-tax
    phillipines :Lexmark: We’re exempted from property tax
    THE Lexmark Research Development Corp., insisted that they are exempted from the real property tax of the city government and for the City Treasurer’s Office to release its Mayor’s Permit for Lexmark.In a letter sent to Ofelia Oliva, City treasurer, Lexmark is asking the city government to reconsider their decision to charge them a real property tax for they are within the eco zone of the city.Lawyer Rita Fernandez, Lexmark’s counsel, said that the national law should be followed over the provision of the City Ordinance 2016.

    Fernandez was referring to the City Ordinance requiring firms in the city to pay real property tax.Lexmark quoted the Republic Act No. 7916 or the Special Economic Zone Act of 1995: “ Except for real property taxes on land owned by developers, no taxes, local and national, shall be imposed on business establishments operating within the ecozone”.Lexmark said it is paying a special tax of 5 percent of their gross income – 3 percent of which goes to the national government, and the 2 percent to the city treasurer’s office.But on the previous ruling of the city, it stated that Lexmark should pay the realty tax based on a city ordinance.

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