It`s time we settled NCEHA`s financial crisis
Transcription
It`s time we settled NCEHA`s financial crisis
April 2014 Maiden Internet Edition “A harmful truth is better than a useful lie” – Thomas Mann Page 1 It’s time we settled NCEHA’s financial crisis MANILA, Philippines - The Bureau of Internal Revenue (BIR) has removed the tax perks given homeowner associations nationwide. Under Revenue Memorandum Circular 92013 dated January 29, 2013, homeowner associations, including those in the posh Forbes Park and Dasmariñas Village in Makati City, are now required to pay valueadded tax (VAT). Let’s face it, either we bite the bullet or go broke... The Bible says “The love of money is the root of all evil” (Timothy 6:10). In real life, it is the lack of money that brings grief, more so when it is impossible to make ends meet Here’s a rundown of our monthly financial position, as of June 2013: Monthly income from collections: Total number of homeowners: 620 Percentage of homeowners who pay 60% Average monthly homeowner dues ₱220.00 Average monthly collection ₱81,840.00 Typical monthly expenses: SWAG Security Agency Administrative Expenses: Personnel (6 employees) Utilities: Power (Meralco) Water (Maynilad) Telephone (PLDT) Other monthly expenses Total monthly expenses 14,000.00 10,287.03 3,000.00 5,000.00 ₱128,661.03 Net monthly income (deficit) (₱46,821.03) ₱55,940.00 40,434.00 Our monthly deficit keeps piling up. As of that date, our outstanding payables were as follows: Mighty Guardians Security Agency ₱16,500.00 Rockland Security Agency 14,000.00 SWAG Security Agency (1 month) 55,500.00 Meralco 35,375.85 Hodieng 3,488.00 Maynilad 10,287.03 PLDT 12,491.80 Screen Mark 15,000.00 Total outstanding payables ₱162,642.68 Cartoon by Randy Bish http://www.cagle.com/tag/internal-revenue-service/page/2/ Therefore, like condominium operators, homeowner associations no longer enjoy “RA 9904, which exempts from taxation tax exemptions on their dues and mem- the association dues and income derived from rental subject to certain conditions, is bership fees. an implied recognition by Congress that “For tax purposes, the association dues, such receipts are subject to income tax,” membership fees and other assess- Henares said. ments/charges collected by a homeowners “Thus, the amounts paid in as dues or fees association constitute income payments or by homeowner-members of a homeowners compensation for beneficial services it association form part of the gross income provides to its members and tenants. The of the latter subject to income tax. This is previous interpretation that the assess- because a homeowners association furment dues are funds which are merely nishes its members with benefits, adheld in trust by a homeowners’ association vantages and privileges in return for such lacks legal basis and is hereby aban- payments,” she added. doned,” BIR Commissioner Kim JacintoThe BIR hopes to raise ₱1.253 trillion this Henares said. year, higher than its 2012 goal of ₱1.066 Wrong interpretation – Prior to the circular, trillion. homeowners associations enjoyed tax incentives under Republic Act 9904, other- In coordination with the Association of wise known as the “Magna Carta for Quezon City Homeowners Association, Homeowners and Homeowners Associa- Inc. (AQCHAI) and the Quezon City Subdivision Division, your Board is studying tions.” legal remedies and other ways and means Section 18 of RA 9904 states that where to work around this onerous Internal Revlocal government units lack resources to enue Memorandum Circular 9-2013. provide for basic services, the associations Second, last August 26, 2012 we were shall endeavor to tap their means to pro- served by the Office of the City Treasurer vide for the same. of Quezon City a Notice of Real Property The BIR said previous rulings exempted association dues from VAT, saying that “condominium corporations do not sell, barter or exchange goods and property nor does it render service for a fee but merely If this were not enough, there are two laws implements the administration of the rethat the Association has now to contend quired services to collect the associated dues from the unit owners pursuant to its with. corporate purpose as trustee of the fund.” First is a Circular from the Bureau of Internal Revenue that imposes income and However, in the circular, Henares clarified value-added taxes over collections of that this interpretation was wrong. monthly dues by homeowners associaShe said association dues, membership tions. fees and other assessments or charges The following was posted on Rappler.Com collected by a condominium corporation are income payments or compensation for on February 6, 2013: (http://www.rappler.com/business/21158-bir-tobeneficial services it provides to its memhomeowners-associations-no-more-tax-perks) bers and tenants. Tax Delinquency. It appears that their records show that our Association should have been paying real estate taxes from 1996 onward on properties owned by the Association. As of now, only the general area where our park is has been identified as subject to the tax – which as of the date of notice now amounts to ₱446,133. The Quezon City Government can and will garnish our subdivision properties to satisfy unpaid taxes due. It is not a question of if, but when it decides to do so. Your Board is seriously considering the voluntary turn-over of its real estate hold Continued on Page 2) April 2014 (Maiden Internet Edition) It’s time we settled… (Continued from Page 1) ings to the City Government, but this solution has as many cons as there are pros. It is quite obvious that our Association is headed for perdition unless we do something about it. The time has come when all of us must “bite the bullet” and settle the financial crisis once and for all. Your present Board has therefore taken the following steps. 1. Sued before the HLURB an initial nine (9) homeowners who have consistently evaded paying their dues, some of which date back to the late 1980’s. In this connection, we are dunning them for interest of 1% per month that their account has been overdue. The complaint, bearing Docket Number NCRHOA-052813-1844 was filed last May 28, 2012. Resolution is expected anytime soon. NEWS CAP Page 2 lion. Imagine how far this amount would Subdivision go in easing our financial crisis! Alpha Village Ayala Heights 2. Brought to the attention of the Capitol Hills Golf Building Official Division, Quezon City Capitol Homes Government, the illegal constructions and illegal occupancy of establish- Capitol Park ments which have broken the subdivi- Ciudad Regina sion’s perimeter wall along Common- Don Enrique Heights wealth Avenue, preparatory to filing suit Doña Petrona Fil-Invest I for damages before the proper courts. Fil-Invest II The case, bearing Docket Number 12- Granwood Villas 2543 was filed last June 2012. Now due La Vista for resolution, it concerns the violation of Loyola Grand Villas P.D. 1096 otherwise known as the Nation- Mapayapa I al Building Code. Mapayapa II Mapayapa III The violation not only involves the destrucMira Nila tion of the wall and arrogation unto themNew Capitol Estates II selves property belonging to the subdivision; this action has enabled criminal ele- New Intramuros Vill. ments to enter and exit our subdivision North Susana thereat without detection – and who knows Tierra Pura if it may even be with the full knowledge Tierra Pura VI Tivoli Greens and consent of those who broke the wall. Vista Real Classica I In this connection, the Board will also go Xavierville I after those who have illegally appropriated Xavierville II property within the subdivision that belongs to the Association. Mo. Dues ₱500 36/sq. m. 700 1,000 minimum 900 900 500 600 840 400 900 18/sq. m. 1,000 600 500 800 750 550 550 600 700 750 800 750 800 500 Clearing of septic tanks begins At this point in time, no more negotiations with defaulting homeowners shall be enter- Last November 2012, your Board begun in tained. The Association has nothing to earnest an inventory and property mapping of all the properties turned over by the June 4 – the clearing of septic tanks in the lose and everything to gain. Bliss Development Corporation to the As- different zones began today, courtesy of More suits will be filed in the future against sociation way back on October 21, 1991. Maynilad. recalcitrant homeowners who have benefitted from the services provided by the 3. Voted unanimously to increase Association through the courtesy of those monthly dues, which have remained unchanged since 1984, as follows: who pay their monthly dues. Dwelling Quad Townhouses Flexihomes From 250 200 215 To 400 350 365 Change 150 150 150 This increase shall be effective starting July 1, 2013, It is worthy to note that the ₱150 increase is equivalent to five (5) bottles of San Miguel beer; or three (3) packs of locallymade cigarettes; or less than the price of a movie show. Surely it is not a burden for homeowners. The biggest obstacle in clearing the tanks of waste residues was that some homeDespite the increases, our subdivision still owners illegally built structures over the has the lowest homeowners dues comaccess openings of the underground http://oxforddictionaries.com/us/definition/american pared with other subdivisions. tanks. The only way then to clear the sep_english/parasite tic tanks would be to demolish whatever For purposes of comparison, here is a list structure was built over them. As of that date, the total arrears of de- of dues charged in various neighboring faulting homeowners totaled ₱1.8 mil- subdivisions, as of 2010: Continued on Page 3 April 2014 (Maiden Internet Edition) Clearing of septic... (Continued from Page 2) NEWS CAP in the house. The scammers call and pretend that a family member has been hurt and needs money for a surgery or medical procedure of some sort. Then they pressure the helper into forcing open the family safe, locked drawers, and the like to get cash and other valuables. The helper is then told to turn over the loot to the gang members. With the legal questions about the authority of the Board over the affairs of the subdivision put to rest once and for all with the approval of its amended Articles of Incorporation and By-Laws and the subsequent certification issued by the Housing and Land Use Regulatory Board (HLURB), the Defense mechanism: Tell helpers and Association may now correct what needs everyone in the house about this scam. To to be corrected. find out if they actually remembered what you said, pretend to be a Dugo-Dugo Gang member and make them go through a drill. Take it a step further by rewarding those that keep their wits about them. Community alert Beware of these criminals Page 3 member much after a man allegedly engaged her in small talk while she was walking along Ortigas Avenue. All she could recall was getting inside a certain van, drinking a glass of water, and handing over two years’ worth of savings of her seaman husband. All that in exchange for a black bag stuffed with sheets of paper. Defense mechanism: First of all, bear in mind one of the first things everyone learns as a kid: Don’t talk to strangers. Of course, that can’t be helped sometimes so remember another basic rule: Don’t accept candy from strangers. In this case, if strangers are giving you something as “sweet” as a bagful of cash, you better refuse. If you’re afraid of being hypnotized, 2. The Budol-Budol Gang find out how the controversial phenomenon supposedly works to avoid succumbScene of the crime: The Budol-Budol ing to it. Gang can strike anywhere using their alleged powers of hypnotism and “boodle” or counterfeit money – hence the name – that turn out to be just sheets of paper. 3. ATM Scams Our CCTV Cameras will help identify criminals Crime does not pay and neither should you, not with your hard-earned cash, gadgets, credit cards, and even your life. Awareness is key to everything so brush up on the Modus Operandi (MOs) of the old-timers and newbies in the world of fast Otsenta’y otso anyos na lola, nabiktima ng bucash cons in the country. dol-budol - Cheryl Cosim & Erwin Tulfo. 1. The Dugo-Dugo Gang YouTube: Alerto 24 (Mike Enriquez): DugoDugo - 2 Kasambahay, ipinakulong ng amo sa hinalang kasabwat ng dugo-dugo gang Scene of the crime: This group robs affluent homes by tricking unsuspecting house helpers into helping them get to the homeowners’ cash and valuables stash. Plan of attack: Remember that PLDT caller I.D. commercial? That’s basically how the Dugo-Dugo Gang operates. After casing a household, the gang members wait for the opportune moment when only the helper is News5Philippines Mar 20, 2012 Interestingly, Google Translate says “budol” means “gullible person.” Plan of attack: Their M.O. may have evolved over the years but here’s their basic tactic: They lure or blackmail their victims into giving them valuables or cash in exchange for a bag filled with fake bills or products. In one reported instance in 2008, two suspected Budol-Budol Gang members managed to get a cellphone, a Walkman, and ₱2,000 from an unidentified 16-year-old girl in Cebu. The male and female suspects claimed they were looking for a vehicle to transport their things. Before they went to search for a vehicle, they asked the girl to hold on to a bag supposedly filled with money. In return, they got the girl to give them her valuables as a sort of safety deposit. It wasn’t long before the girl discovered the bag contained only fake bills. In 2005, a victim identified only as Marie claimed some Budol-Budol Gang members hypnotized her into giving them her money, jewelry, and mobile phones. She said she did not re- Scene of the crime: Usually in the vicinity of ATMs, where scammers try all sorts of things to make a quick buck at the cost of unsuspecting card owners. Plan of attack: ATM scammers have become more technology-savvy through the years. For instance, in 2007, they used magnetic rulers to trap money, surveillance cameras and external keypads to get PINs, and scheme machines to read ATM card information. In 2008, they used a detachable aluminum contraption and some sort of paste to trap money. In 2009, police discovered a new kind of scam, the ATM card switching. 24 Oras explained how the M.O. works: If you have just withdrawn money from an ATM, a scammer may approach you and tell you that you left a P500 bill behind. He or she will suggest that you check your ATM balance. As you do so, the scammer will sneakily memorize your PIN and drop a P500 bill on the ground. When you pick it up – as you are most probably inclined to do – the scammer will swipe your card and replace it with a fake one. April 2014 (Maiden Internet Edition) NEWS CAP Page 4 Editorial: Pets or Pests? Ang mga naglilingkod sa ating kapitbahayan: Some homeowners allow their pets to roam the streets at will, scrounging for food in garbage bins, in the process overturning and spilling their contents. Worse, they leave ordure in the streets and in the yards of other homeowners. They also pose the grave danger of biting people and infecting them with rabies. Other homeowners keep their pets leashed or penned up. However, when they take their pets out for a walk, they allow them to defecate where they will. Josie Pasion Both of the above practices have to stop. Why must anyone endure ordure? It is unsightly, unsanitary, and unsafe. We have seen animal droppings right within the premises of our chapel and in the park where our young ones play! It’s in our streets – it gets stepped on accidentally and brought into our houses. It has come to a point when the Board has decided on fines that make it costly for the pet owner to continue these practices. The next step is to catch these offenders in flagrante and arrest them. For this purpose and other environmental concerns, the Quezon City Government will be deputizing a few of our neighbors into its environmental police force. We have also asked for barangay assistance on this matter. Rolando Ramos So people, shouldn’t we give a shit about this problem and cooperate in keeping our community clean and healthy? Andy’s corner On 17 June 2013, officers from the Environmental Protection & Waste Management Department of Quezon City conducted a seminar on MMDA and city ordinances pertaining to environmental protection and waste management. The whole-day seminar opened our eyes to the fact that there are existing laws and ordinances that prohibit what common sense tells are not only bad for the environment but are un-neighborly and even criminal in nature. Do you know that that by definition, our storm drains are extensions of the natural waterways system? Did you know that it is a crime to dump any kind of garbage, waste matter, or refuse into them? Homeowners who have illegally attached their raw sewage pipes to the storm drains are therefore forewarned: the day of reckoning is much closer than you think. Alex Testigo Maridel Fajardo Do you know that you are prohibited from leaving your motor vehicle parked and unattended for a long period of time, such that it becomes rusty, coated with dirt, and weeds start growing under it? Your violation will fall either under an ordinance that prohibits indiscriminate disposal of waste (if the vehicle doesn’t start) or the ordinance that prohibits obstruction of traffic (if it does start). There’s a whole slew of laws governing waterways, the cleanliness of your surroundings, waste segregation, solid waste management, the use of plastic bags/wraps and Styrofoam. You are not allowed to urinate or defecate outside designated areas (and by extension, you should curb your animals from doing the same). In addition, there are laws governing junk shops and pushcarts. Quezon City Hall is going flat-out to enforce them, through deputized Environmental Police officers who will be clothed with both authority and responsibility. Ponciano Peligro What do these laws have in common? They all contain penalties, beginning with a stern warning and community service, graduating into first, second and third offense citations, with the penalty for each citation becoming steeper in terms of fines, incarceration, and/or community service. So, better watch out, better be good I’m telling you why: the enforcers are coming to town (they’ll know if you’ve been good or bad) so be good for goodness’ sake. Leandro C. Palma Arjay Tabalno