Court orders Procter and Gamble to pay tax debts

THE Regional Trial Court ordered Procter and Gamble Philippines Inc. and the Procter and Gamble Distributing to pay within 30 days its tax debts to the City Government.

This after the local court has ruled against the multinational company and its distribution arm over the P16-million business tax City Hall is trying to collect.

In a decision issued December 13, Judge Renato A. Fuentes found no reason to grant the appeal of Procter and Gambler to be exempted from the city’s business tax.

The firm contends they are but a liaison office in the city that is not into any sales operation.

Likewise, they claimed to have paid the corresponding taxes in Metro Manila where their main office is based.

“It is clear and apparent, the primary function of the so-called liaison office of petitioners do not partake just mere monitoring but in a more dialectic interpretation, intended nothing more than providing, advertising allurement, to give Procter and Gamble products more advantage and attractive to the buying public,” a part of Fuentes’ decision read.

“The fraudulent representation of petitioners that their sales office in Davao City previously utilized in consummating business orders, are now declared only as liaison office to monitor sales promotion, without accepting new sales orders, is a deception particularly to respondent in depriving the City Government of its valid and legal taxes due the petitioners, requiring of said schemic policy of petitioners, intended to evade payment of their valid and legal obligation, with respondent city of Davao,” Fuentes wrote.

With the court’s ruling, the City Government is bent on collecting the tax dues from Procter and Gambler since 2000.

SunStar Davao