How Jackson's concert got Joey Marquez into trouble

Posted at 06/26/2009 8:35 PM | Updated as of 06/26/2009 10:46 PM

MANILA - Filipinos have joined the world in mourning the death and remembering the good and the bad about the King of Pop Michael Jackson, who died Thursday night in California (Friday in Manila) due to cardiac arrest.
 
Former Parañaque City Mayor Joey Marquez is one of those with bad memories about Jackson. The King of Pop's two-night Manila concert in December 1996 got the comedian-turned-politician into trouble.

At that time, Jackson’s international reputation was already suffering due to his child molestation cases. A Filipino couple who worked in Jackson’s Neverland Ranch even provided damaging statements in support of the accusations. 

Thus, other cities thought twice about hosting the concert.

But Marquez, a first-term mayor, not only readily agreed to host the concert; he also offered a sweetener.

According to concert producer Midas Promotions vice-president Michael Hosking, the Philippine government asked for "unaffordable" entertainment taxes.

"I reckon some competitors were involved behind the scenes. They thought they could hold us to ransom, because we were already building and digging," Hosking said in a report posted on Midas Promotions' website. "But a mere two weeks before the gigs, Midas backed up its threat to move the show, and the partners found themselves flying around the island in a helicopter looking for a new site."

Questionable tax cuts

Marquez saved the day for Midas Promotions.

The city government of Parañaque went out of its way and offered the firm a tax cut.  The city council signed a new ordinance a month before the concert, reducing the amusement tax from 20 to 30 percent to a measly 2 percent.
 
Then Parañaque Vice-Mayor Tomas Banaga Jr. later filed a complaint before the Ombudsman against Marquez and the city council for approving the tax cuts.

Parañaque Rep. Roilo Golez also criticized the city ordinance, according to news reports at that time. He said about P37 million could have gone to the city coffers if they had imposed a 20 percent amusement tax.  

According to conservative estimates, the concert raked in at least P150 million in receipts.

Marquez defended the ordinance, saying the 30 percent amusement tax would have been “quite oppressive.”

“Everybody must take note that aside from the two percent tax we’re asking, Midas will pay 30 percent in taxes to the Bureau of Internal Revenue,” The Manila Standard quoted Marquez, in a story published December 11, 1996.  

But the Ombudsman eventually dismissed the complaint, arguing that if the intention of the officials was to give undue advantage to the producer, it should have exempted the company from paying amusement tax, instead of just lowering the rate.

The Ombudsman also said that no special treatment was accorded to Midas Promotions since the reduced amusement tax would be applied to all others concerts, not just Jackson's.
 


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