CEBU CITY - (UPDATED) The Cebu City government filed fraud charges against mall operator SM for allegedly failing to disclose the full size of its newest development, which allowed it to pay lower taxes.

SM declared Seaside Mall as a four-storey structure, which did not include its basement and roof deck. This allowed the company to pay P14 million in real property taxes, when the full amount should have been P37.6 million, according to the charge.

Respondents in the case include SM Prime Holdings board director Hans Sy, board vice chairman Jose Cuisia Jr. and senior tax manager Imelda Lim.

"If they can do this to Cebu, imagine what they have done to the rest of the country?" Osmena said.

Meanwhile, SM Prime said it has complied with all tax regulations.

"SM Prime has yet to receive an official copy of the complaint. The company maintains that it is compliant with all tax regulations and has timely and properly paid its real estate tax obligations on its SM Seaside Cebu property based on Tax Declarations and corresponding tax assessments duly issued by the City of Cebu," SM Prime said in a statement.

SM Seaside opened in 2015 on South Road Properties, a reclaimed area in the city.