Whether or not the City Government of Ozamiz has the power to condone unpaid penalties and surcharges on amusement tax of movie houses for a certain period.
DOJ Opinion No. 067-99 • Other Rules and Procedures • Department of the Interior and Local Government • May 31, 1999
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May 31, 1999 DILG OPINION NO. 067-99 Mayor Elvira D. Tan Ozamiz City RE : Whether or not the City Government of Ozamiz has the power to condone unpaid penalties and surcharges on amusement tax of movie houses for a certain period. M a d a m : In reply to your above-captioned query, please be informed that the City Government of Ozamiz may condone any unpaid penalties and surcharges on the above subject tax. However, such condonation has to be exercised by the Sangguniang Panlungsod thru an ordinance duly enacted for the purpose. cdll In regard thereto, it may be noted that under Section 168 of the Local Government Code of 1991, the imposition of surcharges and penalties is discretionary on the part of the sangguniang panlungsod and are thus collectible only if so expressly imposed in a duly enacted ordinance. This is evident from the phraseology of said section wherein the word "may" was used which, in accordance with the rule in statutory construction, is regarded as permissive only and, therefore, operates to confer discretion ( Bersabel vs . Salvador, 84 SCRA 176 ). The discretionary nature thereof is even bolstered by the fact that the aforecited provision is dealt with under Chapter 3, Book II of the same Code referring to Collection of Taxes which can, therefore, be treated as a tool only for the efficient and effective collection of taxes that cannot be considered as a mandatory imposition. It may be essential to state that in the construction of statutes relating to taxes, those provisions which are designed to secure a methodical and systematic mode of proceedings are construed merely as directory ( cited in Statutory Construction by R . E . Agpalo, Third Edition, 1995, p . 263 ). Accordingly, since the imposition of penalties and surcharges on taxes, fees and charges is within the sound judgment of the sangguniang panlungsod, the discretion to condone the same also lies within the prerogative of the said sanggunian. Please be guided accordingly. Very truly yours, (SGD.) JESUS I. INGENIERO Assistant Secretary Department of Interior and Local Government cc: DIRECTOR ISMAEL J. CABEGIN DILG Regional Office No. X Cagayan de Oro City
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