“WE are not tax cheats.”

Atty. Gonzalo Duque, president of the Lyceum Northwestern University (LNU), made this terse statement in reaction to Dgupan Mayor Benjamin Lim’s recent insinuation that LNU and two other private universities in Dagupan are under-declaring their taxes due the city to evade paying higher taxes.

Lim, in an address to the city last February 14, cited as examples three schools “…of the same size, and more or less, have similar student populations…” in the city that were underpaying their business taxes.

“Mabuti wala ako doon,  kasi kung ako ay nandon, nag-walk out ako. Biro mo, para akong criminal na nag-a-under-declare ng taxes,” Duque said in reference to Lim’s speech at the Dagupan Astrodome where school presidents were invited and also asked to bring along their students.

Aside from LNU, the other schools obiously alluded to bu were not named were the University of Luzon (UL) and Colegio de Dagupan (CdD).

Duque , along with Dr. Mac Arthur Samson, president of UL, and Dr. Voltaire Arzadon, president of CdD, sent letters on February 18 protesting the imposition of business taxes by the city on their institutions, since a ruling of the Department of Finance exempting educational institutions.

The letter was addressed to Lim, Vice Mayor Belen Fernandez and the Sangguniang Panlungsod.

Duque said the institutions are already paying taxes including regulatory fees, mayor’s permit, sanitary permit, inspection permit, and building permit, among others.

“I have the right to reply because he labeled us as tax cheats. This is uncalled for, especially if it is coming from a mayor. Instead of talking to us, iba ang ginagawa niya, ” Duque said.

IGNORANT

Duque further described the mayor as “ignorant” of the works of the private schools, stressing the institutions’ contribution to the development of the city, particularly its status as an educational center in the province.

Meanwhile, Lim, in a recent television interview, replied, “Kung ignorante po ako Atty. Duque, e tignan mo ang binayaran mo para makita mo kung tama. Sinasabi ko dito, kinukumpara ko ang isang unibersidad na nagbayad ng two point something million as against sa eskuwelaan na mas mababa (ang bayad).”

City Hall:  Only CdD is business tax-exempt

THE Dagupan City government has asserted that only Colegio De Dagupan (CdD) is registered as a non-stock, non-profit educational institution, which makes it exempt from paying business tax under the Constitution.

One Stop Business Center manager Carmen Olpindo said under with CdD’s articles of incorporation under the Securities and Exchange Commission, it is covered by Article XIV, Section 4(3) of the 1987 Philippine Constitution which exempts educational institutions from paying certain taxes.

Olpindo, however, clarified that CdD is still not exempted from paying regulatory fees such as the mayor’s permit and sanitary permit, which is different from business tax.

She maintained that Lyceum-Northwestern University and University of Luzon are subject to business tax because these are incorporated as companies with stock-ownerships and report income as profits.

She added that CdD’s canteen operations are subject to a business tax.

CdD was among three private schools which recently questioned the city government’s imposition of taxes.

Duque, hinting that Lim appears to be making Dagupan a city unfriendly to businesses, said he is open to a discussion with the mayor.

He also defended the  city council led by Vice Mayor Belen Fernandez  against the tirade of the mayor over the close scrutiny of the proposed city budget. “It is their duty to protect the money of the people,” he said.

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