An Ordinance Adopting the 2007 Revenue Code of the City of Tagum

November 9, 2020 Excerpt from the Minutes of the 69th Regular Session of the 8th Sangguniang Panlungsod of Tagum, Province of Davao Del Norte Held on November 9, 2020 at the SP Session Hall. EXPLANATORY NOTE The Office of the City Treasurer, being the collection arm of the local government, oversees major revenue generation activities of the city through collection of locally sourced revenues from local business taxes, real property taxes and other fees and charges levied by the city government; and monitors faithfulness of business establishments in the declaration of their gross sales, and in keeping with the settlement of their local tax obligations, not only for the enforcement of collection of current taxes but also of delinquent, undeclared, or under declared tax accounts. In view of the foregoing, to encourage delinquent taxpayers to settle their accounts, while maintaining an attractive and conducive economic environment, it is necessary to amend the provisions set forth in our local revenue code for the examination of books of accounts and other pertinent records of businessmen, and the authority of the City Treasurer to enter into compromise agreements. TAGUM CITY TAX ORDINANCE NO. 001-20 AN ORDINANCE AMENDING SECTIONS 293, 294, 295, 296 AND 297 OF CHAPTER 9 OF TAX ORDINANCE NO. 07-001 "AN ORDINANCE ADOPTING THE 2007 REVENUE CODE OF THE CITY OF TAGUM" BE IT ORDAINED by the Sangguniang Panlungsod of Tagum in session assembled, that: SECTION 1. Sections 293 and 294 of the Local Tax Ordinance No. 07-001 which reads as follows: xxx xxx xxx Section 293. Examination of Books of Accounts. The City Treasurer shall, by himself or through any of his deputies, duly authorized in writing, examine the books of accounts and other pertinent records of the business establishments doing business within the city, and subject to city taxes, to ascertain, assess and collect the true and correct amount of the tax due from the taxpayer concerned. Such examination shall be made during regular business hours once every year for every tax period, which shall be the year immediately preceding the examination. Any examination conducted pursuant to the provisions of this Section shall be certified to by the examining official and such certificate shall be made of record in the books of accounts of the taxpayer concerned. In case the examination herein authorized is to be made by a duly authorized deputy of the City Treasurer, there shall be a written authority issued to the former which shall specifically state the name, address and business of the taxpayer whose books of accounts and pertinent records are to be examined, the date and place of such examination, and the procedure to be followed in conducting the same. For this purpose, the records of the Revenue District Officer of the Bureau of Internal Revenue shall be made available to the City Treasurer, his deputy or duly authorized representative. The forms and the guidelines to be observed for the proper and effective implementation of this Section shall be those prescribed by the Department of Finance. xxx xxx xxx Section 294. Examination of books of accounts and pertinent records of businessmen by the City Treasurer. For the purpose of effective enforcement and collection of the taxes, fees and other impositions provided by this code, the City Treasurer may, by himself or through any of his deputies duly authorized in writing, examine the books of accounts and other pertinent records of any person, partnership, corporation or association or other business establishments doing businesses within the city, and subject to city taxes, to ascertain, assess and collect the true and correct amount of tax due from the taxpayer concerned. Such examination shall be made during regular business hours once every year for every tax period, which shall be the year immediately preceding the examination. Any examination conducted pursuant to the provisions of this section shall be certified to, by the examining officials, and such certificate shall be made of record in the books of accounts of the taxpayer concerned. In the case of examination herein authorized to be made by a duly authorized deputy of the City Treasurer, there shall be written authority issued to the former which shall specifically state the name, address and business of the taxpayer whose books of accounts and pertinent records of the Revenue District Office of the Bureau of Internal Revenue shall be made available to the City Treasurer, his deputy or duly authorized representative. The Revenue District Officer of the Bureau of Internal Revenue of the City of Tagum shall make available all the data needed in the course of examination of books of account of business establishments especially the reproduction of the audited financial statement attached in the Income Tax Return upon official request by the City Treasurer. xxx xxx xxx Shall be deleted and shall now be read as follows: xxx xxx xxx Section 293. Examination of books of accounts and pertinent records of businessmen by the City Treasurer. The City Treasurer shall, by himself or through any of his deputies duly authorized in writing, examine the books of accounts and other pertinent records of the business establishments doing business within the city, and subject to city taxes, to ascertain, assess and collect the true and correct amount of the tax due from the taxpayer concerned. Such examination shall be made during regular business hours once every year for every tax period, but in no case shall the examination cover more than five (5) years except in case of fraud or intent to evade payment of taxes, fees and charges. Any examination conducted pursuant to the provisions of this Section shall be certified to by the examining official and such certificate shall be made of record in the books of accounts of the taxpayer concerned. In case the examination herein authorized is to be made by a duly authorized deputy of the City Treasurer, there shall be a written authority issued to the former which shall specifically state the name, address and business of the taxpayer whose books of accounts and pertinent records are to be examined, the date and place of such examination, and the procedure to be followed in conducting the same. For this purpose, the records of the Revenue District Officer of the Bureau of Internal Revenue shall be made available to the City Treasurer, his deputy or duly authorized representative. The forms and the guidelines to be observed for the proper and effective implementation of this Section shall be those prescribed by the Department of Finance. xxx xxx xxx SECTION 2. The full text of Section 295 of Tax Ordinance No. 07-001 shall now become Section 294. SECTION 3. The full text of Section 296 of Tax Ordinance No. 07-001 shall now become Section 295. SECTION 4. Section 297 which reads as follows: xxx xxx xxx Section 297. Authority of the City Treasurer. The City Treasurer shall have the authority to enter into a compromise agreement on the mode/manner of payment of delinquent taxpayers, which shall not be more than one (1) year. In no case shall the City Treasurer enter into a compromise agreement without the taxpayer issuing a post-dated check corresponding to the agreed mode/manner of payment. Provided, that if the delinquent taxpayer is an alien, in addition to the penalties prescribed hereof, the permit to engage in the business shall be recommended to the City Mayor for revocation. Provided further, that any person, other than the merchant himself, who is found helping or conniving with the merchant in the commission of the violation of the preceding provisions shall also suffer the corresponding penalties prescribed under the above preceding section. Provided finally, that if a government employee in any instrumentality of the government is found abetting, helping or conniving with the merchant in the commission of the crime or violations, aside from the penalties, prescribed hereof, he shall also be administratively charged or recommended for dismissal from the government service. xxx xxx xxx Shall now become Section 296 and shall be amended to read as follows: xxx xxx xxx Section 296. Authority of the City Treasurer. Before availing the administrative remedies and judicial action for collection of taxes, the City Government of Tagum would like to give leeway to delinquent taxpayers by allowing them to pay on installment, the terms and conditions of which are embodied in a compromise agreement. Thus, the City Treasurer shall have the authority to enter into a compromise agreement on the mode/manner of payment of delinquent taxpayers, which shall not be more than twenty four (24) months. No discount shall be given on assessments under Compromise Agreement. The taxpayer shall signify his/her intention by applying to the City Treasurer, manifesting therein his/her plan of payment. If both parties agree, a compromise agreement shall be prepared and entered into. Schedule of payments may be in cash or by post-dated checks, and shall be issued official receipts on due date or date of issue indicated in the check. The paying period shall be as stated in the Compromise Agreement, however, in case of death of the taxpayer, his/her heirs may be granted extension of the period not to exceed six (6) months from the last installment period indicated in the compromise agreement. The City Government of Tagum, during the period covering the compromise agreement, shall grant moratorium on the further imposition and/or collection of interests on delinquent taxes, fees and charges. Provided, that if the delinquent taxpayer is an alien, in addition to the penalties prescribed hereof, the permit to engage in the business shall be recommended to the City Mayor for revocation. Provided further, that any person, other than the merchant himself, who is found helping or conniving with the merchant in the commission of the violation of the preceding provisions shall also suffer the corresponding penalties prescribed under the above preceding section. Provided finally, that if a government employee in any instrumentality of the government is found abetting, helping or conniving with the merchant in the commission of the crime or violations, aside from the penalties, prescribed hereof, he shall also be administratively charged or recommended for dismissal from the government service. Coverage: 1. Real properties located in Tagum City subject to the following conditions: a. Real properties which are declared and taxes thereon have not been paid; b. Newly discovered or undeclared real properties subject to back taxes; c. Real properties sold at public auction sale and purchased by the City for want of a bidder but the title thereto has not been transferred; 2. Delinquent Business Establishments a. Undeclared/Under declared Gross Receipts/Sales resulting to unpaid taxes, fees and other charges; b. Other delinquent accounts with unpaid taxes, fees and other charges; General Rules: a. Payment of taxes for the current year must adhere strictly with the provisions of R.A. 7160, otherwise known as the Local Government Code of 1991; b. Failure of the taxpayer to settle the amount of taxes promised on the specified due date, as embodied in the compromise agreement, the total balance of the delinquent taxes including interest, shall become automatically due and demandable and shall be subject to collection/legal action in accordance with existing laws and regulations. c. Local taxes, fees and charges subject of pending cases pin court for tax delinquencies are not covered. xxx xxx xxx SECTION 5. Separability Clause. Should any provision of this ordinance or any part thereof be declared unconstitutional, invalid, illegal or unenforceable by any court of competent jurisdiction, the other provisions which are not declared as such, insofar as they are separable from the invalid ones, shall remain in full force and effect. SECTION 6. Repealing Clause. All ordinances inconsistent herewith are hereby repealed or modified accordingly. SECTION 7. Effectivity Clause. This Ordinance shall take effect immediately upon its approval. CARRIED AND APPROVED. I HEREBY CERTIFY to the correctness of the foregoing. (SGD.) REY A. BUHION Secretary to the Sanggunian ATTESTED AND CERTIFIED TO BE DULY ADOPTED: (SGD.) JAN DMITRIS. SATOR City Councilor (Temporary Presiding Officer) APPROVED: (SGD.) ALLAN L. RELLON, DPA, PhD City Mayor