City gov't fights it out with PPA

By Maricar M. Calubiran

Enough is enough.

Mayor Jerry P. Treñas warned Philippine Ports Authority (PPA) that the city government would take over its operations if they continue to fail paying their tax obligations to the city government.

At present Philippine Ports Authority (PPA) owes the city government P46,173,471.37.
Treñas said they have given enough time for the PPA to settle their accounts after the Supreme Court (SC) issued a decision favoring the city on their bid to collect taxes from the said agency.

The case between the city government and the PPA became a landmark decision in the SC. The SC already decided with finality in the factual issues concerning the propriety of tax assessment of PPA’s various facilities. The SC also ruled that the ports authority is a profit-earning corporation and its properties are subject to tax.

Treñas said he wants the PPA to pay their taxes in full amount and not in staggered basis. The SC decision came out in 2003 and they must have exerted effort in paying their dues even in monthly basis.

He lamented that the PPA disregarded the city’s call to resolve their tax dues and even questioned the garnishment order sent by City Treasurer Katherine Tingzon. The CTO sent the garnishment order to the PPA on September 23, 2005.

The mayor said the banks are supposed to turn-over the accounts of the PPA in the Land Bank of the Philippines to the city government in relation to the garnishment order handed down by the CTO.

However, the PPA in a letter through its port manager Fernando Claveria described the CTO’s garnishment order as “excessive and unwarranted.” The assessed the tax due in the garnishment amounted to P44,298,470.11. It even increased in the recent computation made by the CTO. The tax due amounted to P46,173,471.37.

In his reply, Claveria said the PPA has not received a copy of the court’s entry of judgment if the case between the ports authority and the city government has become final and executory.

Claveria argued that the notice of garnishment against the personal property is premature at this time. He also said they have already paid the real property tax on the warehouse which was the subject of the case between the city government and the ports authority.

He cited they have official receipts to show that indeed they have already paid the city government of their tax dues as well as their business taxes. “Your notice of garnishment corresponding to aforementioned property and business taxes has been rendered moot and academic.”

The port manager added that the subject of the litigation between the city and the PPA which the city claimed to be final and executory is limited only to the non-payment of the real property taxes covering buildings at the Fort San PedroTerminal, Brgy.Veterans Village for the years 1985-1989. The entire property amounted to P125,990.95. The property includes a warehouse with an assessed value of P81,369.26; building (shed) P5,793.22; residential house P1,754.68; building P13,959.42; building P10,294.10; building P9,998.86 and another building with an assessed value of P2,821.41.