“Impossible and outrageous” income: Another bank branch told to explain

CEBU, Philippines - While waiting for the first case he filed against a bank for alleged tax fraud to get resolved, Cebu City Mayor Tomas Osmeña is training his gun on another branch of BDO Unibank, Inc. for alleged “impossible and outrageous” declaration of gross income.

Osmeña issued the first show cause notice to BDO-Cebu Osmeña Branch that declared P6,986 gross income for calendar year 2016.

“The City of Cebu is under the impression that your declaration of gross sales for C.Y. 2016 is impossible, if not outrageous,” he said, adding that the gross income of P582 per month is not enough to cover the employees’ salaries and other bills.

As stated in the 2016 application form of the branch, the mayor said the branch declared that it has 11 employees including its manager, a cashier, and nine rank and file workers.

Under the 2017 application form, Osmeña said the bank declared P2.3 million gross income which is a “huge disparity” from 2016’s P6,986 declaration.

“It is by these reasons that I find fault against your company, specifically BDO-Cebu Osmeña Branch, for falsifying the application form (C.Y 2016 and C.Y. 2017) and evading the payment of the correct amount of taxes against the City of Cebu,” read the notice dated March 22.

With this, Osmeña asked BDO-Cebu Osmeña Branch manager Pilarina Del Rio to explain in writing within five days from receipt of the notice on why the city government will not order the “immediate closure” of the branch.

The mayor pointed out that the branch is currently operating without a business permit since the city government is still evaluating the bank’s application.

BDO has not issued statement as of press time.

In the notice, Osmeña cited Section 5 of the City Tax Ordinance No. LXIX which states that if the applicant deliberately makes false statements regarding his business, trade, occupation or calling, the city mayor may revoke the permit and the applicant may be prosecuted in accordance with the penal laws.

Osmeña said he will pursue legal charges against the bank after issuing the notice yesterday.

“Same procedure, we’ll file a case. Close it,” he told reporters.

Earlier, Osmeña filed the first case against BDO Magallanes Branch for alleged tax fraud.

Osmeña said that BDO-Magallanes branch allegedly under-declared and falsified its declaration of gross sales of only P400, 000 in the renewal of business permit to the City Treasurer's Office last year.

The BDO-Magallanes branch is still open and operating since the bank has secured a temporary restraining order (TRO) from the court. The said TRO will expire on March 28.

The court is expected to decide on the preliminary injunction petition of the bank on or before the said date. (FREEMAN)