Page Chapter/Section Comments/Suggested Corrections

10 Chapter II Lacking are the Appraisal and assessment provisions from

Sections 201 to 225 of the Local Government Code (check for
applicable provisions to be included, for amendments in the
Revenue Code). Hence the City, particularly the Assessor, has
no legal basis in the assessments being employed in the real
property taxation.
11 Section 10 Local Government Code of 1991 not 1992
15 Section 33 ARTICLE 342. Tax Discount for Advanced and Prompt
Payment. — If the basic real property tax and the
additional tax accruing to special education fund are paid
on time or in advance in accordance with the prescribed
schedule of payment as provided in Article 341 of this Rule,
the sanggunian concerned may grant a discount not
exceeding twenty percent (20%) of the annual tax due.

For purposes of this Rule, prompt payments may be given

a discount of ten percent (10%), while advanced payments
may be entitled to the maximum discount of twenty
percent (20%).

The provision in Article 342 of the IRR (LGC) is more pro-

taxpayer rather than the one in the Revenue Code. (this may be
considered for amendment)
19 Section 52 The provision on Grant of Reliefs does not have legal basis.
The rules on discounts are embodied in Section 251 of the LGC
and Article 342 of the IRR of the LGC. Discounts are not
granted when there is delinquency in payment.
Section 251.Tax Discount for Advanced Prompt Payment. - If the basic
real property tax and the additional tax accruing to the Special Education
Fund (SEF) are paid in advance in accordance with the prescribed schedule
of payment as provided under Section 250, the sanggunian concerned may
grant a discount not exceeding twenty percent (20%) of the annual tax due.
ARTICLE 342. Tax Discount for Advanced and Prompt
Payment. — If the basic real property tax and the
additional tax accruing to special education fund are paid
on time or in advance in accordance with the prescribed
schedule of payment as provided in Article 341 of this Rule,
the sanggunian concerned may grant a discount not
exceeding twenty percent (20%) of the annual tax due.

For purposes of this Rule, prompt payments may be given

a discount of ten percent (10%), while advanced payments
may be entitled to the maximum discount of twenty
percent (20%).
20 Chapter V, Section 58 Taxes on Business/Imposition of Tax; check tax rates in
conformity with Section 191 of the LGC and in reference to the
last approved/enacted Revenue Ordinance of the City for the
10% ruling on the adjustment of rates which is 10% once in
every 5 years.
22 (e) Exporters/Importers.
- Why include importers? They do not have gross
receipts; they buy rather than sell and the tax is based on
the gross receipts of the preceding calendar year.
- Reconcile this provision with that of the LGC:
Section 143.Tax on Business
(c) On exporters, and on manufacturers , millers, producers, wholesalers,
distributors, dealers or retailers of essential commodities enumerated
hereunder at a rate not exceeding one-half (½) of the rates prescribed under
subsection (a), (b) and (d) of this Section:
(1) Rice and corn;
(2) Wheat or cassava flour, meat, dairy products, locally
manufactured, processed or preserved food, sugar, salt and other
agricultural, marine, and fresh water products, whether in their
original state or not;
(3) Cooking oil and cooking gas;
(4) Laundry soap, detergents, and medicine;
(5) Agricultural implements. equipment and post-harvest facilities,
fertilizers, pesticides, insecticides, herbicides and other farm inputs;
(6) Poultry feeds and other animal feeds;
(7) School supplies; and
(8) Cement.
23 (g) The underlined words are not included in the gross receipts of
banks per Revenue Code
Section 143.Tax on Business
(f) On banks and other financial institutions, at a rate not exceeding fifty
percent (50%) of one percent (1%) on the gross receipts of the preceding
calendar year derived from interest, commissions and discounts
from lending activities, income from financial leasing, dividends, rentals on
property and profit from exchange or sale of property, insurance premium.
23 (j) Why a subsection for carinderias/not included in restaurants?
23 (k) Check the rate for peddlers
Section 143.Tax on Business
(g) On peddlers engaged in the sale of any merchandise or article of
commerce, at a rate not exceeding Fifty pesos (P50.00) per peddler
annually.
23 (l) 3% of What? (basis)
24 How are car dealers, internet cafes, classified and taxed?
24 Section 61 Legislating the PIL is not in accordance with the Code
provisions on basing the computation of business tax on the
actual gross receipts/sales for the preceding calendar year’.
The PIL is based on assumptions and although logical, as the
 Revenue Code states, could not be equated with the actual
receipts of the business establishments for the preceding
calendar year. PIL may only be used as reference and nowhere
in the LCG that the gross receipts are allowed to be dictated by
the City Treasury. Business establishments when applying or
renewing for business permits or paying business taxes are
required to execute sworn statements on the gross receipts; how
can this be now done? What should be required is for the
business establishments to submit credible basis of gross
receipts for the correct or accurate computation of tax. The
provision on Section67 (Administrative provisions) state the
course of action that the City Treasurer in case the operators of
businesses fail to submit the sworn statement required.
28 Section 66 ; 3rdpara The LGC does not provide for discount on the full payment of
business license.
29 (d) The provision on PIL contrasts this Section on Sworn
Statement of Gross Receipts or Sales.
29 (e) The City Treasury may require other BIR documents such as the
Vat and Non-Vat Returns since these are submitted quarterly
and could be credible references as well.
31 (i) Is this Section not misplaced?
31 Section 68 Presumptive earning could be highly opinionated like PIL. Also,
this should be used only as reference and legislating the same
may have issue on legal basis.
41 Section 78 Check propriety of rates in reference to Section 191
41 Section 79 Certificate of registration is required only on trucks and vans but
not for tricycle/motorcycle and pedicabs (see Section 78)
42 Section 86 The tax on the newly started business is not provided.
Section 136.Tax on Business of Printing and Publication
In the case of a newly started business, the tax shall not exceed one-
twentieth (1/20) of one percent (1%) of the capital investment. In the
succeeding calendar year, regardless of when the business started to operate,
the tax shall be based on the gross receipts for the preceding calendar year, or
any fraction thereof, as provided herein.
42 Section 89 The tax on the newly started business is not provided.
Section 137.Franchise Tax.
In the case of a newly started business, the tax shall not exceed one-
twentieth (1/20) of one percent (1%) of the capital investment. In the
succeeding calendar year, regardless of when the business started to operate,
the tax shall be based on the gross receipts for the preceding calendar year, or
any fraction thereon, as provided herein.
44 Section 93 Amusement Tax on Admission Fees.-
No proposal for the Administrative Provisions on amusement
places like cinemas and theaters which are employ automated.
44 Section 96 Check the propriety of the returning of the bond. The
preceding paragraph calls for the posting of performance bond.
If it were ‘cash bond’ then,-return, maybe cancellation upon the
 fulfillment of the undertaking is appropriate.
47 Section 107 ’ Professional Regulation Commission (PRC) ‘ may be inserted
after examination…
(c) Add ‘s’ to professional
The required template should read ‘Such List of Professionals
……’
48 Under Article X How about maintaining a database for professionals and the
companies that employ professionals for easy access. Section
128 calls for BPLO ‘to keep a record of persons engaged in
occupation…..’
52 Section 117 2.iii. proof of previous year’s compliance to all regulatory
offices, as provided in the Code. Question: How is one
obtained?
59 Section 134 Why are there no prohibitions on Christmas and New Year
days?Check the requirements under letters ‘c’ and ‘d’ on the age
requirements.
96 Section 230 The imposition by the Building Official of ‘fines not exceeding
Ten Thousand Pesos (P10,000) has no legal basis. Only the
Sanggunian can prescribe the amount of tax and that it should
be fixed rather than stating the ‘not exceeding’ phrase giving too
much discretion to the Building Official. The exact imposition
should be prescribed by the Sanggunian.
100 Section 233 The provision states that the fees to be collected shall
‘supplement
Other sources of revenues for the operation and maintenance of
the City Environment and Natural Resources Office and other
city environment projects’; therefore this makes collections
exclusive source for an activity or program; hence, a special
account should be established.
108 Section 257 Implementabilitycould be a concern in the urban poor
communities. If a household cannot pay, would it be that no
number plates shall be posted? This could be an allowable
expense in the general fund.
109 Section 260 What about the implementing guidelines for
sealing/testing/calibration of pumps in gasoline stations?
110 Section 261 The imposition of interest and surcharge is vague. Clarification
is necessary.
112 Section 264 How about maintaining a database for owners of weights and
measures?
121 Article VI 265(c) Implementability could be a concern. Owners of dogs in urban
poor areas may hardly afford the registration fees much more
the penalties.
160 Section 317(g) How is this related to Section 260, also in the sealing of weights
and measures?
174 Section 359 Who is the ‘SB Chairman’alluded to here, who shall chair the
City Public Market Committee?
172 Section 350 The percentage of interest shall be fixed not to allow discretion
 in the implementation. (‘not to exceed’ shouldnot be used)
359 Section 359 The provision could be interpreted that 4 officials/employees
could be signatories to a compromise agreement. Customarily,
the recommending approval is the Local Treasurer is
recommending approval and the approving authority is the
Local Chief Executive or at least if the Local Treasurer enters
into a compromise agreement, confirmation should be done by
the LCE. However, their representative although authorized
should be discouraged since this is an important contract for the
City.