TAX We didn’t violate any tax rule, BDO tells Osmeña

The management of BDO Unibank Osmeña Blvd. (formerly Jones Ave.) branch said they did not violate any tax rule when it comes to their dues with the Cebu City Government.

In a reply to the show-cause notice issued by Mayor Tomas Osmeña, BDO said its declaration of gross receipts in its 2016 business permit application is pursuant to the definition of gross receipts under the Local Government Code, City Tax Ordinance LXIX and other applicable laws.

Niño Raymond Alvina, acting executive director of BDO Osmeña Blvd. branch, said local business taxes are levied based on gross receipts declared by the taxpayer.

Gross receipts, Alvina said, is limited to those derived from interests, commissions, and discounts.

Osmeña, in his order sent to the bank last week, wants its management to explain why they should not be closed due to their “questionable” declaration of their annual gross income.

According to the records of the City’s Business Permit Licensing Office, the branch had declared a gross income of P6,986 or P582 per month, which is not even enough to cover the salaries of the bank’s 22 employees and to pay their utility bills, rents and security fee, among others.

But BDO said receipts from filing fees, service and other administrative charges including foreign exchange profits are not included in the gross receipts as defined under the Local Finance Circular No. 1-93.

The bank reiterated that their financial statements are subject to extensive audit.

Following the threat of the mayor to shut down BDO’s business, the court has ordered the City to refrain from closing any branch of the bank after granting it with the Writ of Preliminary injunction. /