Fight on tax issue continues, says LNU
HAPPY but could be happier.
Dr. Gonzalo T. Duque, president of the Lyceum Northwestern University (LNU), expressed elation over the decision of the Regional Trial Court declaring portions of the Dagupan City Revenue Code of 2005 as null and void but quickly added this is only a “partial victory” on their petition.
Duque said while he and other education institutions are happy with the decision promulgated by RTC Judge Genoveva Maramba of Branch 44, he would have been happier had the judge also granted LNU’s request for the refund of all the fees levied by the city government since the questioned ordinance took effect in 2002.
“I am happy because this time we are not going to pay any tax at all,” said Duque, also a lawyer, adding that they feel relieved in the face of threats by city hall that the schools’ properties would be seized and auctioned if they will refuse to pay their taxes.
The civil case was filed by the Educational and Medical Development Corporation (EMDC), the holding company of LNU, against the City of Dagupan represented by Mayor Benjamin Lim and City Treasurer Romelita Alcantara.
RECONSIDERATION
The city government indicated it will file a motion for reconsideration on the decision.
Duque also said there are other issues that he should be clarified and “we are ready” to fight the legal battle all the way to the Supreme Court.
In the meantime, Duque said LNU will stop paying business taxes to the city government.
Declared as null and void for lack of public hearing by Maramba were Section 109 (h) and ( i) of the 2005 Revenue Code of Dagupan that imposed a tax of two percent of gross receipts to school establishments.
EMDC questioned the imposition citing that the code specified all other businesses to be taxed and the list does not cover private schools.
The petition also argued that the tax imposition was made even if not a single private school was invited to the public hearings when the revenue code was being drafted.
Duque said he respects Maramba’s decision declaring the ordinance void ab initio or void from the beginning but could not understand why the judge did not recognize their position that the revenue code is illegal because it was only published in one newspaper of general circulation, The Sunday Punch, and not in three publication as required under the ordinance itself.
“My position is, if the publication is irregular, hindi puwedeng mag-take effect yung ordinance,” Duque said.
OTHER PRIVATE SCHOOLS
Duque believes the decision applies to all private schools in Dagupan similarly being levied the two per cent tax on gross receipts year.
He said other private schools could invoke the ruling and stop paying the taxes in question although he noted that the other private schools in the city, except the University of Luzon (UL), remained silent in the midst of LNU’s legal battle.
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