The Cebu City government has ordered the closure of the Abuhan Restaurant after it was found out that the management had failed to secure a business permit since 2013. The management, however, has voluntarily stopped operations as shown by the tarpaulin that hangs on the gate of the establishment. CDN PHOTO/LITO TECSON
City Hall shuts down resto owned by Tom O’s cousin
Not even the mayor’s cousin could stop Cebu City Hall’s crackdown on businesses without proper business permits.
The next business establishment to be shut down by the city government is Abuhan Restaurant along F. Ramos St. which is registered under a certain Jose Antonio Osmeña, who is the restaurant’s manager and a first-degree cousin of the mayor.
Abuhan Restaurant was found by the City Treasurer’s Office (CTO) to have been operating without a business permit from 2013 to 2017.
“Abuhan in Ramos is owned by an Osmeña. Abuhan in Ramos will be shut down after tomorrow. Relatives or not (ESPECIALLY relatives), you do not pay your business taxes, you do not do business,” read a post by Mayor Tomas Osmeña on his Facebook page on Tuesday evening.
According to the mayor’s wife, Cebu City Councilor Margarita Osmeña, Jose Antonio is the first cousin of the mayor and is the brother of Renato Osmeña.
But while City Hall has yet to formally implement the closure order against Abuhan, the restaurant has already stopped its operations.
“To our valued customers, we shall be closing effective November 28, 2017 to give way for the construction of a strip mall. Thank you for your patronage,” read a tarpaulin which was posted on the gate of the restaurant.
City Treasurer Tessie Camarillo said that the management of Abuhan had been given due process and were informed of their deficiencies since last month.
A first notice to comply was issued by the CTO on October 2 which was followed by a final demand letter on October 11.
CTO personnel were also able to examine the restaurant’s books of accounts.
“Upon review of our records, they retired their original business in 2013. Then after that, there was nothing,” she said.
When they interviewed representatives from the management, Camarillo said that they were told that they tried to apply a new business permit this year under the permittee name, “Learning Association de Abuhan Inc.”, and under the business name “Abuhan Filipino Cuisine.”
They tried to register it as a non-stock, non-profit association.
Camarillo said but when they reviewed their articles of incorporation, the business could not be allowed to operate with this classification since their restaurant business was for profit.
Based on the CTO’s assessment, Abuhan owed the city P979,456.50 in taxes.
But, Camarillo said, the management tried to settle their obligations and were able to pay P422,877.53 last November 20.
“As for the balance of P566,188.97, they entered into a compromise agreement with the city for them to pay it on installment for six months,” she said.
Camarillo emphasized that the mayor agreed on the compromise agreement.
It has been reported that Abuhan is now trying to open a new restaurant within Mango Ave. where there is an ongoing construction for their establishment.
“We advise them to register (it) as a new corporation that could handle Abuhan. It has to fit with the proper classification,” she said.
She added that the CTO will examine documents to make sure if a certain business application is really taxable or not to make sure that they are registered as a proper business.
She said these could be seen also in their articles of incorporation.
Camarillo assured that with reports of Abuhan reopening in Mango Ave., the CTO would also check on them and make sure they operate with proper business permits and pay the right taxes.
Cebu Daily News tried to contact a representative from the management of Abuhan Restaurant to get their side on the closure order, but repeated calls to their telephone number were not answered.
Mayor Osmeña has already signed a closure order against Abuhan Restaurant last November 21.
“Verification of your records was made with the Office of the City Treasurer relative to the status of your business establishment. It was found out that you failed to secure the Mayor’s Business Permit which violates the provision of the Omnibus Tax Ordinance of Cebu City,” read the order.
The order was signed and received by Jose Antonio Osmeña on November 27.
City Hall’s Prevention Restoration Order Beautification Enhancement (Probe) team was supposed to implement the closure order but even before doing so, the restaurant has already closed down.
Newly reinstated Probe team head Raquel Arce said they were supposed to already implement the order today.
Before Abuhan, City Hall has already ordered the closure of at least six other business establishments earlier this year.
Rico’s Lechon’s two branches in Barangay Mabolo and along Escario St. and its commissary in Barangay Talamban were closed by the city last August for operating with no business permits.
Last September, food establishments Time Out Restaurant, D’ALLEY @Jeshian Cafe and Ed’s Tambayan were also issued with separate closure ordered by the mayor.
Mayor Osmeña has been vocal on closing down business establishments operating with no permit and not paying taxes to the city.
The mayor also earlier said that he is willing to go easy on establishments with no business permits as long as they pay proper taxes to help the city’s coffers.