Bureau of Local Government Finance Opinion

December 19, 1997 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 2nd Indorsement Respectfully returned to the Provincial Treasurer of Bohol, Tagbilaran City. This refers to the letter dated June 5, 1997 of the Municipal Treasurer of Pilar, Bohol regarding the real property and business taxes payable by Hanil Development Co. Ltd., now Hanjin Engineering and Construction Co. Ltd., (Hanjin for brevity). It appears that tax bills have been served to Hanjin since 1993 but these remain unpaid up to the present, notwithstanding repeated demands/requests for the settlement thereof. Hanjin claimed that the matter was referred to their lawyer and to NIA Manila considering that all payments on works accomplished and tax deductions are made by the main office. On February 27, 1997, Hanjin finally executed an Affidavit of Undertakings declaring that said claim be now addressed directly to them, hence, bills have been sent to the Director of Hanjin. However, no response has been received by that Office as of this time. In view thereof, it is being requested by that Office that the matter be brought up to the department level thru arrangement with the Department of Public Works and Highways to withhold from the amount due to Hanjin the amounts corresponding to the real property and business taxes payable to said municipality and that province. In this connection, it is informed that in a separate letter of even date, copy enclosed, this Bureau referred to the DPWH the request to withhold the total amount of P8,459,938.22 from any amount that may be due Hanjin and that the same be remitted to the Municipal Treasurer of Pilar in settlement of the unpaid taxes accruing to the said municipality. THaCAI However, the municipality may also avail of the remedies provided under Section 174, quoted hereunder: "SEC. 174. Civil Remedies . The civil remedies for the collection of local taxes, fees, or charges, and related surcharges and interest resulting from delinquency shall be: "(a) By administrative action thru distraint of goods, chattels, or effects, and other personal property of whatever character, including stocks and other securities, debts, credits, bank accounts, and interest in and rights to personal property, and by levy upon real property and interest in or rights to real property; and "(b) By judicial action. "Either of these remedies or all may be pursued concurrently or simultaneously at the discretion of the local government unit concerned." Be guided accordingly. (SGD.) LORINDA M. CARLOS Executive Director