17 Oct Local Government Questions PHIVIDEC’s Tax Exemption
Source: kagay-an.com
The local tax treatment of the Philippine Veterans Investment Development Corporation (PHIVIDEC) was questioned by the local government of the municipalities of Tagoloan and Villanueva and the province of Misamis Oriental after it only acquired four month’s worth of its total collected real property tax from the different existing business establishments in its economic zone.
In an article by Sunstar Cagayan de Oro, Misamis Oriental Vice Governor Jose Mari Pelaez said that PHIVIDEC should have made sure to remit the full tax payment of all businesses leasing its land since it is classified under Government-Owned or Controlled Agencies (GOCC).
Pelaez said that 100 percent of the real property taxes collected by PHIVIDEC since 1992 should have been visible which is a big difference compared to the 25 percent being remitted by the corporation.
Meanwhile, PHIVIDEC lawyer Kristine Chaves said that PHIVIDEC is a “government instrumentality exercising corporate powers and not a GOCC.”, which means that it has no shares or stocks considered as its own.
Pelaez also expressed his doubts about the PHIVIDEC’s status as a government instrumentality when it is functioning as a subsidiary of a corporation.
Chaves replied that PHIVIDEC as a corporation has already been abolished last year through the Memorandum Order 87 issued by former President Benigno Aquino III.
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