BIR-10 continues to tax COWD; tax now P364.7 M

July 13, 2008

sir jong bienvenido batar cowd

By Lizanilla J. Amarga

The regional office of the Bureau of Internal Revenues (BIR-10) tax assessment against the Cagayan de Oro Water District (COWD) has now amounted to P364.7 million now covering 1997 to 2005.

COWD assistant general manager Bienvenido V. Batar, Jr. decried how the BIR-10 continues to make tax assessments against them even including surcharges and interests.

This despite how the Department of Justice (DOJ) has yet to come out with its decision on whether they are liable to pay income and franchise tax pursuant to Presidential Decree 198 provides that they are “exempted from all forms of taxes.”

Also, such assessments were made and forced against them through Warrants of Levy and Garnishment amid the preliminary injunction issued by Regional Trial Court Judge Maximo Paderanga this year.

“No one really expected that BIR-10 would do this considering there is a pending case and an injunction order,” he told Gold Star Daily.

The paper failed to contact BIR-10 revenue district officer Ester Palala for her side as of press time yesterday but this BIR-10 top-ranking official earlier explained that even if COWD is the only water firm distributor in this city it must pay its tax debts.

She then cited Sections 205 and 213 of the National Internal Revenue Code, which provides that the BIR has the power to levy real property of a delinquent taxpayer.

Also, an official from the BIR-10 who spoke on the condition of anonymity for personal and legal reasons yesterday explained that the pending case at the DOJ does not mean they should stop assessing tax dues and collecting them.

“We are only doing our jobs,” he said.

Moreover, this tax officer said the preliminary injunction order issued by Judge Paderanga was only for the BIR-10 assessment against COWD for the period 1997-2003 and does not include 1997-2005.

He said there are now three assessments against COWD – RR16-098-112-05 dated September 14, 2005 for the P341 million tax delinquency; RR16-098-021-08 dated February 6, 2008 for the P10.6 million as Income Tax, Surcharges and Interests; and RR16-098-021-08 dated February 6, 2008 for the P13.1 million as Franchise Tax, Surcharges and Interests.

“What is covered by the injunction is only the assessment last September 14, 2005,” he said.

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Written by admin · Filed Under Cagayan de Oro