Bureau of Local Government Finance Opinion

March 10, 2010 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully referred to the City Treasurer, Antipolo City the within letter dated 11 February 2010 seeking clarification regarding surcharges and interest imposed for late payment on unpaid taxes, fees or charges. As a backgrounder, in a letter dated 29 June 2009 addressed to Hon. Clarito L. Manllilin, CESO III, Assistant Secretary for Finance and Controllership, Department of the Interior and Local Government (DILG), Ms. Socorro T. Paz, CPA, made an inquiry as to the basis in computing surcharges, penalties and interest on late payment of business license and other fees and charges, as well as the counting of period within which to impose interest on unpaid taxes being implemented by the Business Permits and Licensing Office (BPLO) of Antipolo City, which, in her opinion, was not in accordance with the provisions of R.A. 7160, otherwise known as the Local Government Code (LGC) of 1991. Said letter was referred to that Office for comment and/or appropriate action under an indorsement dated September 14, 2009. In response, the Business Permit and Licensing Office (BPLO) thereat, submitted that "surcharge and penalty assessed were computed based on the date it became delinquent (20 January 2009) up to the time of the payment (09 June 2009) and were all in accordance with Section 168 of the Local Government Code (LGC) of 1991 (RA 7160) and Section 2.J.05 of (the) Revised Revenue Code of Antipolo City (2000)." Further clarification is being requested by Ms. SOCORRO T. PAZ on the following issues: 1. A 10% interest for the 2nd quarter installment was imposed when the tax became due only on April 20, 2009, which constitutes a two (2) month delay and therefore, as contended, is subject to a 4% interest and not 10%. 2. Notwithstanding the fact that the taxes due the 3rd (July 20, 2009) and 4th (October 20, 2009) quarters were paid in advance on June 9, 2009, the same were both subjected to a surcharge of 25% and an interest of 10%. cIDHSC Action taken on the matter herein referred to is requested within five (5) days upon receipt hereof, together with a copy of the Revised Revenue Code of Antipolo City (2000) or excerpt thereof, imposing surcharges on unpaid taxes, fees, or charges and interest on unpaid revenues. Be guided accordingly. (SGD.) MA. PRESENTACION R. MONTESA Executive Director