SRP lot sales boost BIR-13 January-September revenue collection

CEBU, Philippines – Payments made by three property developers for lot purchases at the South Road Properties (SRP) boosted the cumulative collection of the Bureau of Internal Revenue-13 in Cebu City from January to September 2015.

Official data showed yesterday that BIR-13 exceeded its revenue goal for the first nine months of 2015 by 1.1 billion or 6% to P20.2 billion. Its goal for the period was P19.1 billion.

BIR-13’s collection from January to September grew 29% if compared to P15.6 billion it collected in the same period last year.

In an interview yesterday, BIR-13 Regional Director Hermeno Palamine said the SRP lot transactions were the main contributor to the collection growth.

In August this year, the Cebu City government sold a 45.2-hectare lot at the SRP to three developers – Filinvest Land Inc., Ayala Land Inc. and SM Prime Holdings.

The city government had made the three winning bidders pay the 50% down payment of the total P16.7-billion transaction. The City had been paid P6.7 billion on August 12. The remaining 50% of the sum will be settled in two to three years on installment basis.

Palamine, however, could not quantify how much exactly the taxes BIR-13 collected from those lot payments.

The BIR data, however, indicated that among the five revenue district offices (RDO) under BIR-13, RDO 82- Cebu City South, where the SRP lots are located, posted the highest collection growth in September. During that month, its collection grew by 3.2 billion to P3.5 billion from P233.6 million in September 2014. From January to September, the RDO raked in P5.6 billion, growing by P3.7 billion from P1.9 billion last year.

Previous reports said the winning bidders would be the one to pay the applicable taxes arising from the transaction. These taxes include capital gains tax, documentary stamp tax, clearances and registration fees, except local transfer tax as provided under the terms of reference for the lot sale.

Moreover, Palamine also attributed the revenue growth to the recent meetings of the Asia-Pacific Economic Cooperation (APEC) in Cebu, which boosted the income of hotels and other establishments.

“The contribution of APEC was significant,” the BIR official said.

This year, BIR-13 is set to collect P25.4 billion, up 25% compared to its P20.9-billion target last year. In 2014, BIR-13 raked in P21.1 billion, exceeding its collection goal by 1.05%.

BIR collects 70% of total government revenues. (FREEMAN)