BDO to Osmeña: We’re no tax cheats

CEBU, Philippines -  The Banco de Oro-Magallanes Branch insisted that the Cebu City government has no legal basis to revoke its business permit.

In a letter to Mayor Tomas Osmeña dated January 11, BDO-Magallanes Branch Manager Joseph Lao said the bank has consistently complied with the Local Government Code, City Ordinance No. LXIX, and other applicable rules and issuances on the determination of gross receipts.

"Given that the grounds for revocation are limited only to those provided in local ordinances, we reiterate our submission that a purported violation of the Revised Penal Code on Other Deceits and Falsification cannot be used as basis to revoke BDO-Magallanes' business permit. Moreover, there is no final ruling by any competent court that such offenses were committed," the letter reads.

On January 4, Osmeña filed a case against the bank for alleged under-declaration of its gross sales in the renewal of business permit last year. The bank only declared P400,000 gross sales.

Osmeña said the alleged “deliberate and malicious” act of under-declaring and falsifying its gross sales in its business permit is a sufficient ground for its immediate revocation and warrant the closure of the business.

But  Lao said the city failed to provide the "specific factual circumstance" as basis for the revocation of the permit and closure of the establishment.

“With all due respect, under the circumstances and given all the meritorious reasons discussed above, we request that the factual basis be first provided to BDO-Magallanes before any further action be taken concerning its business permit,”  Lao said.

He also cited the Supreme Court ruling in Rural Bank of Makati versus Municipality of Makati, et al wherein the high tribunal ruled that "the local government unit's order of closure of the bank due to alleged delinquent taxes is improper because the bank is not engaged in illegal or immoral activities."

Meanwhile, Osmeña said the bank has the ability to hire several smart lawyers that they could have its "sexy defenses."

"They have so many smart lawyers there that they are trying all kinds of stumbling block. That we cannot get the information on how much to tax them. They will not give the information. We have to rely on what they tell us. And they telling us is the revenue that they make is the same as the balut vendor.  To me, it’s an insult to the Cebuanos," the mayor said.

With this, Osmeña said he plans to ask the City Council to pass a resolution asking the Commission on Elections to include in the elections in 2019 the question to Cebuanos whether or not the city will close all branches of BDO in the city.

"So, if the people would say to close them, I will close them fast. So BDO will not be in cebu City anymore," he said, adding that he cannot fight the big company on his own.  (FREEMAN NEWS)