John Hay developer billed P72 million in unpaid duties
By Thomas F. Picana, MT Northern Luzon Bureau Chief
BAGUIO CITY: The Bureau of Customs slapped the Camp John Hay Development Corp. (CJHDC) on Thursday an assessment for unpaid import duties and taxes from 1998 to 2004 amounting to P71.98 million.
The assessment came in the heels of the Bureau of Internal Revenue’s denial of CJHDC’s request for authority to print non-VAT receipts and invoices.
The customs and the internal revenue bureaus cited the Supreme Courts’ March 29 resolution affirming an earlier decision to nullify tax and duty exemptions the Camp John Hay special economic zone.
“This proves that we are not hiding behind the Court ruling. The impact of the Cour’s decision is immediate and real,” said the lawyer Gina Alvarez.
Alvarez claimed the assessment proves that BCDA had allegedly reneged on its assurance of a 5 percent gross-income incentive in its lease agreement.
“With this mounting tax problem, BCDA can rest assured that CJHDC will seek indemnification. We will pursue all legal steps to protect our rights as spelled out in our lease agreement,” Alvarez added.
The Court’s decision spurred the City Treasurer’s Office of Baguio City to assess CJHDC in January with some P101.93 million in real-estate taxes since the developer took over the 246-hectare Camp John Hay property in 1996.
In its assessment letter dated May 26, Customs District Collector Edward O. Baltazar asked CJHDC to settle the back duties within 15 days.
“BCDA has accused us of employing `scare tactics.’ Isn’t it more frightening when the business sector, including the public in general, could not count on the government to honor its word? Isn’t it the mother of all scares when, after failing to honor its word, government threatens an illegal takeover?” Alvarez said.
He was referring to the BCDA’s announcement that it was seriously considering a takeover of Camp John Hay.
But Rep. Mauricio Domogan of Baguio City said the takeover plan was ill-advised, saying, “Takeover is easier said than done. I still believe Camp John Hay is better managed by the private sector.”
Meanwhile, the City Council of Baguio, concerned over the controversy, conducted on Monday an inquiry into the Camp John Hay row
The assessment came in the heels of the Bureau of Internal Revenue’s denial of CJHDC’s request for authority to print non-VAT receipts and invoices.
The customs and the internal revenue bureaus cited the Supreme Courts’ March 29 resolution affirming an earlier decision to nullify tax and duty exemptions the Camp John Hay special economic zone.
“This proves that we are not hiding behind the Court ruling. The impact of the Cour’s decision is immediate and real,” said the lawyer Gina Alvarez.
Alvarez claimed the assessment proves that BCDA had allegedly reneged on its assurance of a 5 percent gross-income incentive in its lease agreement.
“With this mounting tax problem, BCDA can rest assured that CJHDC will seek indemnification. We will pursue all legal steps to protect our rights as spelled out in our lease agreement,” Alvarez added.
The Court’s decision spurred the City Treasurer’s Office of Baguio City to assess CJHDC in January with some P101.93 million in real-estate taxes since the developer took over the 246-hectare Camp John Hay property in 1996.
In its assessment letter dated May 26, Customs District Collector Edward O. Baltazar asked CJHDC to settle the back duties within 15 days.
“BCDA has accused us of employing `scare tactics.’ Isn’t it more frightening when the business sector, including the public in general, could not count on the government to honor its word? Isn’t it the mother of all scares when, after failing to honor its word, government threatens an illegal takeover?” Alvarez said.
He was referring to the BCDA’s announcement that it was seriously considering a takeover of Camp John Hay.
But Rep. Mauricio Domogan of Baguio City said the takeover plan was ill-advised, saying, “Takeover is easier said than done. I still believe Camp John Hay is better managed by the private sector.”
Meanwhile, the City Council of Baguio, concerned over the controversy, conducted on Monday an inquiry into the Camp John Hay row
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