DOJ Opinion No. 17, s. 2020: Authority of Local Treasurers to Assess, Collect and Audit Local Taxes, Fees and Charges

July 2, 2020 BLGF MEMORANDUM TO : All BLGF Central and Regional Directors SUBJECT : DOJ Opinion No. 17, s. 2020: Authority of Local Treasurers to Assess, Collect and Audit Local Taxes, Fees and Charges For the information and guidance of all concerned, and in view of the request of Secretary Carlos G. Dominguez, Department of Finance (DOF), for opinion on the authority of local treasurers to assess and collect local taxes, fees and charges, relative to the position of this Bureau on the inherent powers of local treasurers, attached herewith is a copy of Opinion No. 17, s. 2020 dated 30 April 2020, issued by Secretary Menardo I. Guevarra, Department of Justice (DOJ) , on the matter, the pertinent portions of which are quoted hereunder: "Guided by these rules, and taking all the relevant provisions of the LGC together, we reached the conclusion that by express provision of law, the local treasurer is granted the power to assess (Section 171), collect (Section 170) and audit (Section 195) the payment of local taxes, fees and charges, including local business taxes . To rule that the local treasurer does not have the power to assess local taxes, fees and charges, only to collect and audit their payment, would render nugatory Section 171 which clearly and expressly authorizes the local treasurer to examine the books of accounts and pertinent records of any person, partnership, corporation, or association subject to local taxes, fees and charges, once for every tax period, in order to assess and collect the correct amount of the tax, fee, or charge. xxx xxx xxx With respect to the issuance of business licenses and permits, Sections 444(b)(3)(iv) and 455(b)(3)(iv) of the LGC are clear that it is the mayor who shall issue the same. This is understandable since these licenses and permits are signed by the mayors or their designated representatives. However, the assessment and collection of the business taxes, charges and fees, relating to the issuance of these licenses and permits, pertain to the local treasurer by express provision of Sections 170 and 171 of the LGC. xxx xxx xxx With this, it can be said therefore that the power to assess and the power to audit the payment of local taxes, fees and charges are powers that remain unquestionable and are taken as a matter of fact before the courts. xxx xxx xxx In sum, it is our opinion that the Offices of the City or Municipal Treasurer have the power and authority to assess, collect and audit the payment of local taxes, fees and charges, including local business taxes , as provided in Sections 170, 171 and 195 of the LGC, while the powers of the Offices of the City or Municipal Mayor under Sections 444(b)(3)(iii) and (iv) and 455(b)(3)(iii) and (iv) of the LGC pertain only to generally overseeing that all taxes and other revenues of the city or municipality are collected and the issuance of business permits and licenses after payment of the required local taxes, fees and charges to the Offices of the City or Municipal Treasurer. Please be guided accordingly." In this regard, all BLGF Central and Regional Directors shall disseminate the subject DOJ Opinion to all local treasury offices under their respective jurisdictions, and all concerned shall be guided accordingly. CAIHTE (SGD.) NIO RAYMOND B. ALVINA Executive Director ATTACHMENT DOJ Legal Opinion No. 017-20 April 30, 2020