QUESTION:
Aldrin, I paid local business taxes (LBT) last January. I did my numbers and found it erroneous and excessive. The problem is, the LGU threatened me that my business permit won’t be issued if I won’t pay the local business tax (LBT) assessment. For fear of disrupting my business operations, I caved in and paid it. I desperately needed a valid license to continue doing business. I couldn’t afford to close shop. What should I do?
ANSWER:
This is really an ongoing problem for many business owners and entrepreneurs.
Some local tax examiners are coming up with assessments that are capricious (for lack of a better word).
For many business owners…
They are held hostage and simply opt to pay the ransom…
Nay, the assessment…
Otherwise, they won’t be able continue their operations and be forced to close shop in the city or municipality.
If this is the case, this is what you have to do…
File a WRITTEN PROTEST to the City or Municipal Treasurer.
Do this within SIXTY (60) DAYS from receipt of the notice of assessment.
If you don’t file this within the 60-DAY PERIOD…
The assessment will be conclusive.
Hence, the assessment will be valid.
In which case, there will be no more basis for a claim of refund…
So, time is of the essence.
Now, what do you do if the City or Municipal Treasurer does not find merit on your WRITTEN PROTEST?
The legal remedy in this case, would be to file an APPEAL with the Court.
While I can understand that the LGU must find ways to meet their collection targets…
These measures should not be pursued at the expense of business owners and entrepreneurs who are religiously paying their tax obligations, year in and year out.
Lest, they kill the goose that lays the golden egg.
You see…
Businesses can relocate to another city, potential investors can avoid opening shop and consequently…
Less revenue collection for the LGU…
Less LGU projects to sustain and finance…
And less job opportunities for the constituents.
In other words, it’s a balancing act.
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