CEBU CITY, (PNA) — The Court of Appeals 20th Division has denied the motion for reconsideration filed by Velez College against a May 20, 2013 decision in favor of the city’s right to collect some P20.5 million in business taxes the college owes the city since 2000.
In the decision, the CA upheld the Regional Trial Court (RTC) Branch 58 ruling in 2011, which states that Velez College has to pay the City P20.5 million in business taxes from 2000 until 2010.
“After a thorough review of the records, this court finds no cogent reason to depart from its May 20 decision. The arguments relied upon by the petitioner (Velez) in its motion for reconsideration deserve no consideration as they have been judiciously scrutinized and squarely ruled in said decision,” said Associate Justice Ramon Paul Hernando in a three-page decision dated Sept. 11.
In its 2011 decision, RTC Branch 58 ordered Velez College to pay its obligations to the Cebu City Government.
The RTC denied the school’s petition for writ of preliminary injunction that questioned the validity of the amended Cebu City Omnibus Tax Code, which provides for the collection of business taxes from private educational institutions.
The amended ordinance reclassified schools and hospitals as service-oriented industries, subject to business tax based on their gross sales.
The court said that an ordinance enjoys the presumption of regularity and validity.
It said the burden is on Velez College to overcome the presumption.
Velez College had argued that the City Government cannot impose local taxes on the school unless there is a valid tax ordinance supporting it.