BOC files complaint vs. New San Jose Builders for unpaid tax obligations

The Bureau of Customs (BOC) on Tuesday lodged a complaint with the Office of the Solicitor General (OSG) against real estate developer New San Jose Builders Inc. and its three surety companies for failing to settle tax obligations.

In a statement on Wednesday, the bureau said New San Jose imported construction-related items from 2012 to 2013, when it was contracted by the Iglesia ni Cristo (INC) to build the Philippine Arena in Malolos, Bulacan.

According to its website, New San Jose is a "privately held real estate company" headquartered in Barangay Paligsahan, Quezon City, with Jose Acuzar as chairman, Dr. Isagani Germar as co-chairman and Engineer Cesar Sanqui as president.

The developer posted bonds amounting to P947.3 million and issued by its three surety companies, Centennial Guarantee Assurance Corp. (CGAC), Intra Strata Assurance Corp. (ISAC) and Philippine Fire and Marine Insurance Corp. (PFMIC).

The bureau said New San Jose did not have certificates of exemption from the Department of Finance (DOF), which then required them to post bonds covering duties and taxes for the shipment.

The real estate firm was required to pay duties and taxes on importation as the DOF did not gave New San Jose an exemption privilege under Section 86 of Republic Act No. 9593, or the Tourism Act of 2009.

Section 86 party states that "subject to rules and regulations which properly define capital investments and equipment necessary for various kinds of tourism enterprises, registered enterprises shall be entitled to an exemption of 100 percent taxes of all taxes and customs duties on importations of capital equipment."

GMA News Online is still trying to reach San Jose officials for a comment on the matter.

The BOC noted that in December 1, 2015, the Port of Manila (POM) Bonds Division acting chief "recommended the forfeiture of the bonds for the failure of San Jose and the surety companies to settle their obligations, despite the BOC's repeated demands."

In a memorandum dated September 20, 2016, the POM Law Division also recommended the forfeiture of the matured bonds, the bureau said. — Marlly Rome Bondoc/VDS, GMA News