| Subject: 162 MovieHouses to Close B/c of Back Taxes! |
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Date Posted: 01:30:04 07/20/05 Wed
Author Host/IP: 202.69.177.41
In reply to:
The Philippine Star 07/14/2005
's message, "Fmr B.I.R. Commissioner Parayno Mentioned" on 14:33:18 07/13/05 Wed
Now you see them, soon you won't.
That is, if the 162 remaining moviehouses will be forced to shut down for their back taxes of about P1 billion since 1996.
Tonight gathered that owners of the country's moviehouses fear shutting down their business establishments in case the government insists on collecting from them about P1 billion worth of back taxes in value added tax (VAT).
Engr. Ric Camaligan, president of the National Cinema Association of the Philippines, recently disclosed that they have raised their tax woes to the office of President Gloria Macapagal-Arroyo so their predicament would be resolved as soon as possible.
The case stemmed from the tax assessments sent by the Bureau of Internal Revenue (BIR) to all moviehouses in the country,
BIR former commissioner Guillermo Parayno
including about 138 theaters owned by the SM shopping mall.
Tonight gathered that Henry Sy's SM Cinema alone owed the BIR P.5 billion in VAT back taxes. They are disputing the amount, however.
It was pointed out in the tax assessments that the nation's moviehouses owed the BIR in back taxes retroactive since 1996.
But Camaligan, who is also first vice president of the SM cinema, said that there was never a law which says they are covered by the VAT.
He likewise bared that they could not possibly pay the BIR the hefty sum since they have not included the VAT in the price of their movie admission fees since 1996.
Moviehouses are vital venues especially for the local showbiz industry because they serve not only as avenues for showcasing Filipino artistic talents but also generate livelihood to thousands of its dependents, including movie scriptwriters, production crew, extras, and their families.
Camaligan pointed out that it would allegedly be a case of double taxation since moviehouses are required to pay the necessary amusement taxes to the local government.
It was learned that the Ayala cinemas and some other moviehouses were constrained to shell out multi-million worth of back taxes in VAT upon insistence of the BIR.
Tonight also learned that the moviehouse owners belonging to the Metro Manila and the Greater Manila theater associations were inspired to get together via one big association so that they can make proper representations with the government through dialogue with officials of the BIR regarding their predicament.
But the BIR, under then former commissioner Guillermo Parayno, insisted on collecting the VAT due from the moviehouses since 1996 reportedly upon "orders from higher ups."
Presently, moviehouses are reeling from the economic slump aggravated by the oil price shock, forcing about 300 moviehouses in Metro Manila alone to close down.
It was feared that admission fees could shoot up to the detriment of moviegoers, especially if the expanded value added tax (E-VAT) would be implemented after the temporary restraining order shall have been by the Supreme Court.
This could further aggravate the situation of cinema owners who can no longer afford to settle the back taxes they never collected from moviegoers.
The High Tribunal opted to maintain the TRO on the E-VAT pending its resolution soon.
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Posted in the Regine Velasquez forum board.
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