STATEMENT | On Mayor Francis Zamora’s claims of non-payment of tax dues during my term as Mayor of San Juan
March 01, 2023
Mayor Francis Zamora’s claim that the city government during my term as Mayor failed to pay its tax dues is absurd. The tax dues he was referring to in his statement involved a legal issue, where we had to protect the city government and the interest of our citizens from an erroneous assessment on the part of the Bureau of Internal Revenue (BIR).
At the time, the BIR’s assessment of the San Juan Medical Center, as well as VAT linked to parking income, treated these as private corporations and calculated tax dues on the basis of gross income. We saw this as unfair and a waste of taxpayers’ money. We rightly contested the BIR’s assessment. My term had already ended before the result of that contest was released.
When Zamora took over, the BIR wrote a demand letter addressed to the city government. Since the BIR’s assessment and tax collection concerned the city government and that he had already assumed the post of local chief executive at the time, it was his obligation to file a motion for reconsideration of the assessment with the BIR within thirty (30) days.
He left this appeal untouched on his table for an entire year to the detriment of our previous dissent against the BIR’s assessment, as well as the interest of the city government and the people of San Juan. By that time, it was already too late to put up an effective appeal against the BIR’s assessment. Moreover, he paid the tax dues in question even though the five (5) year prescriptive period for the collection of tax deficiencies had already elapsed.
His allegations against me are nothing short of an attempt to avoid accountability for his failure to facilitate the timely release of the terminal leave pay of our retired city government employees. Instead of doing so, Zamora went around, looking for someone to blame. I was, of course, the easiest target.
I will let the achievements of my administration speak for themselves. During my term as local chief executive, San Juan was widely recognized for its effective fiscal management, backed by our sweeping reforms and our efforts to digitize our local government processes. The fact that we were frequently awarded the Seal of Good Local Governance during my administration is proof of this.
I reiterate my call on Zamora to immediately release the terminal leave pay that is due to our retired city government employees. This issue is about them and giving what they deserve. Stop these diversionary tactics.
