Bureau of Local Government Finance Opinion

June 2, 2014 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully referred to the City Treasurer, Caloocan City, for comment and/or appropriate action the herein letter dated April 28, 2014 of Ms. Yolanda Y. Sze, Corporate Secretary, YAK HUA Electrical Supply, regarding the assessment notice of the Business Permit and Licensing Office (BPLO) for deficiency taxes and other charges covering the periods 2009 to 2013. In view of the said notice of assessment issued by the BPLO thereat, the following queries were posted: 1. Are Local Government Units thru its BPLO authorized or even allowed to assess business taxes? (Section 171-LGC of 1991) 2. Are BPLOs empowered to make ocular inspection of businesses, to determine if they are paying the right regulatory fees and following rules and regulations imposed, thru enacted local ordinances? 3. As a legitimate business enterprise, does YAK HUA Electrical Supply has the right or even the privilege to demand answer or replies to queries/questions addressed to LGUs, to serve as guidelines on fair governance? (R.A. 6713-Code of Conduct of Ethical Standard) 4. Are LGUs authorized to implement the controversial "Presumptive Method" of collecting business taxes even if the business enterprise declares its preceding calendar years gross sales/receipts religiously? 5. Are LGUs authorized to deviate in the implementation of the Local Government Code of 1991, so much so that they sometimes ignore the code completely or are they duty bound to implement what is provided for in the Code, no more, no less? aScITE In order that appropriate action could be taken on the matter, comments and/or advised of action taken hereon, within five (5) days from receipt hereof is requested. (SGD.) SALVADOR M. DEL CASTILLO OIC-Executive Director