Cebu City Mayor Tomas Osmeña files tax evasion case against SM Prime Holdings at the Prosecutors office on Wednesday. (CDN PHOTO/LITO TECSON)
Cebu City Mayor Tomas Osmeña filed a tax evasion complaint before the City Prosecutors Office on Wednesday afternoon against SM Prime Holdings Inc., citing alleged violation of Article 318 (Other Deceits) of the Revised Penal Code.
Osmeña claimed that SM Prime Holdings grossly misrepresented the declared area of their SM Seaside City building, which resulted to payment of a tax amount that was significantly lower than what they should have paid.
Osmeña said that instead of paying real property tax in the due amount of P37 million, SM Prime Holdings only paid P14 million, depriving the city of at least P23 million in revenue.
In an statement sent to Cebu Daily News, the SM Seaside City Cebu management said: “We cannot comment until we can refer the matter to our tax department who will have to review the details of the Mayor’s statement regarding the SRP real property taxes.”