Makati to auction properties with unpaid taxes
MANILA, Philippines – The Makati City government has started to prepare for a public auction of delinquent properties in order to compel the collection of P5.51 billion in unpaid taxes.
"We recommended that management enforce collection remedies allowed by…RA No. 7160 (Local Government Code), particularly the sale of delinquent properties through public auction," the Commission on Audit (COA) said in its 2018 audit report of Makati City.
The COA added that, "In fact, the CT (city treasurer) programmed the conduct of public auction on the delinquent properties after the May 2019 election."
Under the local government code, the local government unit (LGU) is authorized to auction delinquent properties in order to compel the entities to pay their tax obligations to the city.
The COA said it has been recommending auction to the Makati LGU for years.
For the 2018 audit report of Makati, the COA said P3.61 billion in real property taxes and P1.90 billion in special education taxes have not been collected from property owners dating back to 2009.
"Had the city exercised its power to auction delinquent properties as allowed by law, the accumulation of tax delinquencies could have been precluded," the COA said.
Makati's city treasurers have avoided resorting to auctions as it may lead to court disputes. The LGU said they have been sending out notices to entities about their unsettled obligations.
The COA said that Makati's current city treasurer has agreed that public auctions are "much more effective tool in the collection of delinquent taxes."
"Auctioning off properties have a strong positive impact on tax collection because the threat of losing the property would force taxpayers to settle their delinquencies," the COA said. – Rappler.com