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UNCOLLECTED TAXES COSTING CITY MILLIONS; OUT OF TOWN BUSINESSES BENEFITING FROM CITY INCOMPETENCE; UNION DEMANDS REFORM

 UNCOLLECTED TAXES COSTING CITY MILLIONS; OUT OF TOWN BUSINESSES
 BENEFITING FROM CITY INCOMPETENCE; UNION DEMANDS REFORM


/The information contained herein is embargoed for release after the
 11 a.m. press conference on Monday, Aug. 10./
 AFSCME District Council 47 today charged that the City of Philadelphia does not collect a minimum of $15,000,000 of owed business taxes.
 At a press conference called in front of the Revenue Department offices at 11 a.m., Monday, Aug. 10, at the CIGNA Building, 16th and Arch streets, Thomas Paine Cronin, president of District Council 47, AFSCME stated, "These taxes are sitting there waiting to be collected, but the city simply cannot manage to send out auditors to collect the tax." Cronin continued, "For the past 10 years we have been telling the city about the colossal waste of tax resources, but no one will take the issue seriously."
 The union presented two examples of how much money the city is losing by not collecting taxes fully out of town businesses:
 -- 1. A fast food chain did not include franchise fees as income in its tax returns. On a rare audit a city worker found this error and returned with a check for $460,000.
 -- 2. A super market chain made honest errors in preparing their estimated tax returns. When informed of these errors last year they paid an additional $1,000,000 in taxes.
 There are more than 10,000 companies doing business in Philadelphia who pay their taxes based on estimates. The city adopted a policy some years ago of restricting travel by auditors.
 Union members from the Department of Revenue today challenged the Rendell administration to take seriously these millions of dollars of lost opportunities and to start collecting owed taxes. Cronin said, "The city says it doesn't have money to sign a fair union contract and to meet the needs of the people of Philadelphia. There is at least $15,000,000 and maybe as much as $40,000,000 a year of taxes that companies will pay -- if we only ask them to." He challenged the city to recognize this real source of revenue as a step towards a fair contract.
 CONTACT: David Ford of AFSCME District Council 47, 215-972-5558, or 215-546-9880.
 /delval/
 -0- 8/7/92


CO: AFSCME District Council 47 ST: Pennsylvania IN: SU:

MJ-JS -- PH015 -- 8013 08/07/92 12:02 EDT
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Publication:PR Newswire
Date:Aug 7, 1992
Words:398
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