City says show organizer owes P1.7M in taxes

CEBU, Philippines - The Cebu City Treasurer’s Office warned the organizer of the recently held “The Great American Circus” to pay the P1.7 million it owes the city in amusement taxes or else be stripped of business permit and face charges in court.

City Treasurer Ofelia Oliva said that they are running after a certain Ericson Uy, owner of Tajimaya Charcoal Grill located in Barangay Kasambagan, Cebu City, who ordered a stop to the payment on the check worth P1.2 million initially deposited to the city as partial payment of the assessed tax.

A week after the series of shows, the CTO was surprised when the Veteran’s Bank returned the check to the CTO as it could not be deposited under the city’s account since it has a stop payment order from the owner.

The show which was held in two separate locations – Waterfront Hotel and Casino from January 8 to 9 and Cebu Coliseum from January 11 to 12 – has a total assessed amusement tax of P1,748,560.50.

This comprises 10 percent of the gross sales amounting to P1,371,420, a 25 percent surcharge or P342,855 and a two percent interest amounting to P34,285.50.

The show earned P10,056,000 last January 8 to 9 and P3,153,700 from January 11 to 12.

Oliva said that before they permitted Uy to hold the show, the latter first refused to pay saying that they should be exempted for no reason.

She said that there is no exemption because there is no resolution from the city council exempting them from paying amusement tax. The CTO also discourages the council from granting amusement tax exemption because it takes away the opportunity from the city to earn.

Oliva said that the circus show was already given a big discount because they are only collecting 10 percent of the gross sales. Supposedly, according to the city ordinance, the amusement tax to be collected from theaters, cinemas, concert hall, circuses, boxing places and other places of amusement is 30 percent of the income.

Oliva said that they will give Uy three days from the receipt of the demand letter to settle the said amount.

“Should you fail to do so, we will constrain to revoke/cancel your issued business permit or to refer this matter to the legal office for appropriate legal action in contemplation of Batas Blg. 22,” Oliva told Uy.

Oliva said that the city government can charge Uy with tax evasion for refusing to pay its obligation, among others.  (FREEMAN)