The city government of General Santos City (Gensan) conducts a strict monitoring on unscrupulous business firms that misdeclared their tax payments, particularly tuna companies – the main industry in this city.
City Treasurer Rodilon Lacap has ordered personnel of the City Treasurer’s Office (CTO) to intensify the city’s tax mapping operations and inspection of the book of accounts of business firms to ensure that they are declaring their incomes religiously.
Lacap’s directive came in the wake of reports that some business establishments are misdeclaring their income to avoid paying higher taxes to the city government.
He cited a certain case involving a multi-national tuna processing firm which allegedly understated its gross income.
Lacap said he will look into the book of accounts of Alliance Select Food International, Inc., a multinational firm that produces canned tuna for export. In 2013, it only declared more than P600-million gross income and paid P1.7 million in taxes.
It was learned that the P600-million gross sales the company declared was remarkably lower than the P3.6-billion gross revenues reported in the 2013 annual report it submitted to Philippine Stock Exchange.
Lacap, however, explained that they will determine if the P3.6-billion gross revenues declared by Alliance Select Food Int’l., Inc. was generated by its canned tuna processing plant in this city alone or was collected from all its subsidiaries.
“The business tax paid by the tuna firm to the city government in the amount of P1.7 million is less than one-percent of its declared P600-million gross revenues,” Lacap said.
During the tax assessment, Lacap said the company’s management asked that they be taxed based on only 70 percent of their gross sales.
The Business Permit and License Division headed by Geraldine Zamora disclosed they have to intensify the tax mapping operations after companies and business establishments have renewed their business permit.