The Quezon City council, under the guidance of the city mayor Herbert Bautista, has passed an ordinance under which all the business owners and the operators in the Quezon City are exempted from audit and examination of their books of accounts from 2016 to 2018. The ordinance also comes with the clause that says, the above exemption is applicable given that the business owners and operators voluntarily pay 30% more than their previous years Local Business Tax (LBT) payment. Through this ordinance, those who have LBT payable in 2019 that is at least 30% higher than the previous year are exempted from inspection and examination of their books of accounts and other pertinent documents covering calendar years 2016, 2017 and 2018. The decision has come amid elevated headline inflation and four months ahead of the local elections in the month of May.
The author of the ordinance, Councilor Victor Ferrer Jr. said that the additional 30% intends to offset the revenue lost due to the suspension of 2019 fair market values on the property. He further stated that the basis of the new law is Section 192 of the Local Government Code of 1991.
According to the Mayor’s office, this move is expected to encourage the taxpayers to declare more taxable gross receipts and at the same time simplify the procedures in the payment of business taxes. Also, know that this LBT amnesty does not cover those with pending cases in the court of law in the Philippines or any administrative offices concerning their business records.
The decision of whether the business owner wants to review their books of accounts or not is left to them entirely. This assessment has made the Quezon City a tax-payer friendly city and is set to become a premier business haven for the investors. It will also encourage the generation of more funds and tax collections to pay off the city’s projects and obligations.
It is also said that the ordinance passed shall make things easy, trouble-free, and uncomplicated and further simplify the procedure involved in the payment of business taxes and contribute to the speedy, timely facilitation of business permit and license renewal. It will considerably minimize the task of the employees of the Quezon City Treasurer’s Office whose invaluable time, effort and energy could be utilized and focused of other endeavors and activities geared towards revenue collection and mobilization.