Bureau of Local Government Finance Opinion

April 11, 2016 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully referred to the Municipal Treasurer of Daraga, Albay for comment and/or appropriate action, the herein attached copy of the letter dated March 7, 2016 of the Board of Directors of Grupong Magkakarne kan Daraga Multi-Purpose Cooperative seeking exemption from the imposition by the municipality of the Permit Fee to Slaughter under Section 1 (a) of the Revenue Code of Daraga on the ground that it is now considered a cooperative under the provisions of Republic Act No. 9520 otherwise known as the Philippine Cooperative Code of 2008. Representations are made that the above-mentioned cooperative previously requested for such exemption through private communications with Mayor Gerry R. Jaucian. It was denied at that time because the said organization was not yet recognized as a cooperative by the municipality but rather, a corporation under Ordinance No. 21-95. With the advent of Municipal Ordinance No. 03-2016 amending Ordinance No. 21-95, the juridical status of the group was changed from Grupong Magkakarne kan Daraga, Inc. to Grupong Magkakarne kan Daraga Multi-Purpose Cooperative . With this recent development, this recognition as a cooperative is now being relied upon by its Board of Directors in seeking exemption of their members from payment of Permit Fee to Slaughter allegedly pursuant to BLGF Memorandum Circular (MC) No. 31-2009 dated October 7, 2009 and not BLGF MC No. 41-2009. On the basis of the aforesaid BLGF MC, that Office is of the opinion that the permit fee to slaughter may no longer be imposed if the cooperative is already paying the Mayor's permit fee for operating the slaughterhouse. In this connection and in order that appropriate action could be taken on the matter, that Office is requested to submit its comments or action on the matter within five (5) from receipt thereof. Be guided accordingly. (SGD.) JOCELYN T. PENDON OIC-Executive Director ATTACHMENT LGUOS-PPPSD-CCS No. 2016-0468INDre * Referred to the Municipal Treasurer of Daraga, Albay for comment and/or action on claim for exemption from payment of permit fee to slaughter by Grupong Mangkakarne kan Daraga Multi-Purpose Cooperative Choose response type 12-Apr-16. aCIHcD Note from the Publisher: Copied verbatim from the official copy. Mr. Renato A. Masbate Chairman Grupong Mangkakarne kan Daraga Multi-Purpose Cooperative 2nd Floor Bldg. 3, Daraga Public Market Daraga, Albay Tagging Information : Keywords : Referred to the Municipal Treasurer of Daraga, Albay for comment and/or action on claim for exemption from payment of permit fee to slaughter by Grupong Mangkakarne kan Daraga Multi-Purpose Cooperative. Synopsis : Grupong Mangkakarne kan Daraga Multi-Purpose Cooperative was previously a mere organization pursuant to Ordinance Number 21-95 which sought for exemption from payment of Permit to Slaughter Fee but was denied on the ground that it was not a cooperative. Recently, with the enactment of Municipal Ordinance No. 03-2016, the status of the organization was updated from a mere organization to a cooperative, hence the request for exemption. The request was referred to the Municipal Treasurer of Daraga, Albay for comment and/or appropriate action. Grupong Magkakarne Kan Daraga Multi-Purpose Cooperative 2nd Floor, Bldg. 3, Public Market, Daraga, Albay Landline: 483-46-51 CDA Reg. No.: 9520-0502241 March 7, 2016 Ms. Nancy Aguilar Municipal Treasurer Daraga, Albay Dear Madam : We are again writing your good office relative to the request of the Grupong Magkakarne kan Daraga Multi-Purpose Cooperative to exempt its members from the imposition by the municipality of the Permit Fee to Slaughter under Article I, Section 1 (a) of the Revenue Code of Daraga considering that it is a cooperative under the provisions of Republic Act No. 9520, otherwise known as the Philippine Cooperative Code of 2008. In our previous communication with the Honorable Mayor Gerry R. Jaucian our previous request for such exemption was denied considering the fact that at the time our organization was not yet recognized by the municipality as a cooperative rather a corporation. Recently however the Sangguniang Bayan of Daraga amended Ordinance Number 21-95 by changing the juridical status of our group from "Grupong Magkakarne kan Daraga, Inc." to "Grupong Magkakarne kan Daraga Multi-Purpose Cooperative." 1 With the recognition therefore of the municipality of our group as a cooperative you have no more reason not to exempt our members from the permit fee to slaughter under the Revenue Code. To reiterate, this exemption is based on the legal opinion of the Bureau of Local Government Finance, Department of Finance to the effect that the "permit fee to slaughter may no longer be imposed if the cooperative is already paying the Mayor's permit fee for operating the slaughterhouse, pursuant to the afore-cited provision of BLGF MC No. 41-2009." 2 Trusting that you will act favorably on this request. We remain. Very truly yours, The Board of Directors (SGD.) RENATO A. MASBATE (SGD.) WENCESLAO M. MORADA (SGD.) DANILO R. VERDILLO (SGD.) MARJORIE D. TORRENTE (SGD.) BETTY B. NUNEZ Republic of the Philippines Province of Albay MUNICIPALITY OF DARAGA Office of the Mayor July 4, 2013 Mr. Renato A. Masbate Chairman Grupong Magkakarne kan Daraga 2nd Floor Bldg. 3, Daraga Public Market Daraga, Albay Dear Mr. Masbate: Reference is your letter dated May 4, 2013 requesting this Office that Grupong Magkakarne kan Daraga Multipurpose Cooperative be exempt from paying the Permit Fee to Slaughter under Article 1, Section 1 (a) and (b) of the 2010 Revenue Code of Daraga based on the letter-opinion of Mr. Salvador Del Castillo, OIC-Executive Director, Bureau of Local Government Finance. cSaATC Much as we would like to accommodate your request, but unfortunately, upon perusal of the franchise issued by the Municipality to operate a slaughterhouse, it appears that the franchise was issued to the Grupong Magkakarne kan Daraga, Incorporated. With that in mind, we believe that your group, Grupong Magkakarne kan Daraga Multipurpose Cooperative has no personality to operate nor ask for exemption of the Permit Fee to Slaughter because of this existing ordinance. Thus, we cannot grant your request for exemption unless the franchise be amended granting the Grupong Magkakarne kan Daraga Multipurpose Cooperative the right to operate said slaughterhouse. Please be guided accordingly. Thank you. Very truly yours, (SGD.) GERRY R. JAUCIAN Mayor "DARAGANG MAGAYON, PADAGOS TANG PAUSWAGON" Daraga Municipal Ordinance No. 003-16 January 26, 2016. Footnotes 1. For your ready reference we are attaching Municipal Ordinance No. 03-2016 approved by the Honorable Mayor last January 29, 2016. 2. Copy of the Legal Opinion is hereto attached for your ready reference.