Case Digests for Taxation 2

7/26/2019 Case Digests for Taxation 2

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1. Republic v. GST Philippines, Inc., G.R. No. 190872, 17 October 201

[PERLAS-BERNABE, J.]

FACTS

Respondent GST is a VAT registered doesti! !orporation priari"# engaged in stee" and iron prod$!ts. %$ring ta&a'"e #ears

())*-())+, GST i"ed !"aied or $n$ti"ied e&!ess inp$t VAT attri'$ta'"e to its ero rated sa"es.

Perio! "#te o$ %ilin& o$ '!(inistr#tive )l#i( %or Re$un!

st /$arter o #ear ())* J$ne 0, ())*

(nd /$arter o #ear ())* A$g$st (, ())*

1rd /$arter o #ear ())* Fe'r$ar# 2, ())+

*t3 /$arter o #ear ())* Fe'r$ar# 2, ())+

st /$arter o #ear ())+ 4a# , ())+

(nd /$arter o #ear ())+ No5e'er 2, ())+

1rd /$arter o #ear ())+ No5e'er 2, ())+

For ai"$re o C6R to a!t on its adinistrati5e !"ais, GST i"ed or a petition or re5ie7 'eore t3e CTA. T3e CTA granted t3e

petition. C6R i"ed an 4R '$t 7as denied. 6n a petition or re5ie7 'eore t3e CTA En Ban!, C6R raised t3at t3e appea" 'eore t3e

CTA 7as i"ed 'e#ond t3e reg"eentar# period. GST asserts t3at $nder Se!tion ( 8A9 o t3e Ta& Code, t3e pres!ripti5e period is

!op"ied 7it3 i 'ot3 t3e adinistrati5e and :$di!ia" !"ais are i"ed 7it3in t3e t7o-#ear pres!ripti5e period; and t3at !op"ian!e

7it3 t3e ()-da# and 1)-da# periods $nder Se!tion ( 8%9 o t3e Ta& Code is not andator#

6SSs a!tion or re$nd 3as !op"ied 7it3 t3e pres!ripti5e periods $nder t3e Ta& Code.

?EL%

N@, as to !"ais in ())* and irst $arter o ())+.

ES, as to se!ond and t3ird $arter o ())+.

T3e ()-da# period is andator# and :$risdi!tiona".?o7e5er, t3e S$pree Co$rt !ategori!a""# 3e"d t3at B6R R$"ing No. %A-

*20-)1 dated %e!e'er ), ())1 pro5ided a 5a"id !"ai or e$ita'"e estoppe" $nder Se!tion (* o t3e Ta& Code. B6R R$"ing

No. %A-*20-)1 e&press"# states t3at t3e Dta&pa#er-!"aiant need not 7ait or t3e "apse o t3e ()-da# period 'eore it !o$"d see

:$di!ia" re"ie 7it3 t3e CTA '# 7a# o Petition or Re5ie7. As s$!3, a"" ta&pa#ers !an re"# on said r$"ing ro t3e tie o its

iss$an!e on %e!e'er ), ())1 $p to its re5ersa" '# t3e S$pree Co$rt in Ai!3i on @!to'er , ()), 73ere it 7as 3e"d t3at t3e

()1) da# periods are andator# and :$risdi!tiona".

T3ereore, GST !an 'eneit ro B6R R$"ing No. %A-*20-)1 7it3 respe!t to its !"ais or re$nd o $n$ti"ied e&!ess inp$t VAT

or t3e se!ond and t3ird $arters o ta&a'"e #ear ())+ 73i!3 7ere i"ed 'eore t3e C6R on No5e'er 2, ())+ '$t e"e5ated to t3e

CTA on 4ar!3 H, ()) 'eore t3e e&piration o t3e ()-da# period 84ar!3 2, ()) 'eing t3e ()t3 da#9. B6R R$"ing No. %A-

*20-)1 ee!ti5e"# s3ie"ded t3e i"ing o GST>s :$di!ia" !"ai ro t3e 5i!e o preat$rit#.

2. )o((issioner o$ Intern#l Revenue v. "#sh *n&ineerin& Philippines, Inc. +"*PI, G.R. No. 18-1-, 11 "ece(ber 201


2/15

[4EN%@IA, J.]

FACTS

Respondent %EP6 i"ed its ont3"# and $arter"# 5a"$e-added ta& 8VAT9 ret$rns or t3e period ro Jan$ar# , ())1 to J$ne 1),

())1. @n A$g$st 0, ())*, it i"ed a !"ai or ta& !redit or re$nd or t3e $n$ti"ied inp$t VAT attri'$ta'"e to its ero-rated sa"es.

Be!a$se petitioner Coissioner o 6nterna" Re5en$e 8C6R9 ai"ed to a!t $pon t3e said !"ai, respondent 7as !ope""ed to i"e a

petition or re5ie7 7it3 t3e CTA on 4a# +, ())+. CTA r$"ed in a5or o %EP6. C6R e"e5ated t3e !ase to CTA En Ban! a5erring

t3at t3e !"ai 7as i"ed o$t o tie. %EP6 asserts t3at its petition 7as seasona'"# i"ed 'eore t3e CTA in eeping 7it3 t3e t7o-

#ear pres!ripti5e period pro5ided or in Se!tions ()*8!9 and ((0 o t3e N6RC. CTA En Ban! aired t3e CTA di5ision r$"ing.

6SSs :$di!ia" !"ai 7as i"ed 7it3in t3e pres!ripti5e period $nder Se!. ( o t3e Ta& Code.

?EL%

N@.

T3e t7o-#ear period inSe!. ( reers on"# to adinistrati5e !"ais. Se!tions ()* and ((0 o t3e N6RC pertain to t3e re$nd oerroneo$s"# or i""ega""# !o""e!ted ta&es.6np$t VAT is not e&!essi5e"#> !o""e!ted as $nderstood $nder Se!tion ((0 'e!a$se at t3e

tie t3e inp$t VAT is !o""e!ted t3e ao$nt paid is !orre!t and proper. ?en!e, respondent !annot ad5an!e its position '# reerring

to Se!tion ((0 'e!a$se Se!tion ( is t3e ore spe!ii! and appropriate pro5ision o "a7 or !"ais or e&!ess inp$t

VAT.Petitioner is entire"# !orre!t in its assertion t3at !op"ian!e 7it3 t3e periods pro5ided or in t3e a'o5e$oted pro5ision is

indeed andator# and :$risdi!tiona", as aired in t3is Co$rt>s r$"ing in San Ro$e, 73ere t3e Co$rtEn Ban! sett"ed t3e

!ontro5ers# s$rro$nding t3e app"i!ation o t3e ()1)-da# period pro5ided or in Se!tion ( o t3e N6RC and reiterated t3e

Ai!3i do!trine t3at t3e ()1)-da# period is andator# and :$risdi!tiona".

T3ereore, in a!!ordan!e 7it3 San Ro$e, respondent>s :$di!ia" !"ai or re$nd $st 'e denied or 3a5ing 'een i"ed "ate.

A"t3o$g3 respondent i"ed its adinistrati5e !"ai 7it3 t3e B6R on A$g$st 0, ())* 'eore t3e e&piration o t3e t7o-#ear period in

Se!tion " (8A9, it $ndo$'ted"# ai"ed to !op"# 7it3 t3e () 1)-da# period in Se!tion " " (8%9 8no7 s$'paragrap3 C9 73i!3

re$ires t3at $pon t3e ina!tion o t3e C6R or () da#s ater t3e s$'ission o t3e do!$ents in s$pport o t3e !"ai, t3e

ta&pa#er 3as to i"e its :$di!ia" !"ai 7it3in 1) da#s ater t3e "apse o t3e said period. T3e () da#s granted to t3e C6R to de!ide

t3e !ase ended on %e!e'er H, ())*. T3$s, %EP6 3ad 1) da#s t3erero, or $nti" Jan$ar# , ())+, to i"e a petition or re5ie77it3 t3e CTA.


3/15

=3et3er VGPC6 ai"ed to o'ser5e t3e proper pres!ripti5e period re$ired '# "a7 or t3e i"ing o an appea" 'eore t3e CTA

'e!a$se it i"ed its petition 'eore t3e end o t3e ()-da# period granted to t3e C6R to de!ide its !"ai or re$nd $nder Se!tion

(8%9 o t3e Nationa" 6nterna" Re5en$e Code 8N6RC9.

?EL%

ES, to CTA Case No. H0).

N@, to CTA Case No. 212.

T3e :$di!ia" !"ai i"ed on Septe'er 1), ())1 8CTA Case No. H0)9 7as preat$re"# i"ed and !annot 'e taen !ognian!e o

'e!a$se respondent ai"ed to 7ait or t3e re$isite () da#s ater t3e i"ing o its !"ai or re$nd 7it3 t3e B6R 'eore e"e5ating

t3e !ase to t3e CTA. ?o7e5er, t3e :$di!ia" !"ai i"ed on %e!e'er 0, ())1 8CTA Case No. 2129, 73i!3 7as ade ater t3e

iss$an!e o B6R R$"ing %A-*2)-)1, !an 'e !onsidered '# t3e CTA despite its 3ast# i"ing on"# one da# ater t3e app"i!ation or

re$nd 7as irst "odged 7it3 t3e B6R.

-. 'pplie! %oo! In&re!ients )o(p#n, Inc. v. )o((issioner o$ Intern#l Revenue, G.R. No. 18-2, 11 Nove(ber 201

[SEREN@, CJ.]

FACTS

Petitioner is a Va"$e-Added Ta& 8VAT9 ta&pa#er engaged in t3e iportation and e&portation '$siness, as a p$re '$#-se"" trader.

Petitioner a""eged t3at ro Septe'er 002 to %e!e'er 1, ())), it paid an aggregate s$ o inp$t ta&es or its iportation o

ood ingredients.S$'se$ent"#, t3ese iported ood ingredients 7ere e&ported 'et7een t3e periods o Apri" , ())) to %e!e'er

1, ())), ro 73i!3 t3e petitioner 7as a'"e to generate e&port sa"es ao$nting to P*,+HH,01H.(*. T3e aorestated e&port sa"es

73i!3 transpired ro Apri" , ())) to %e!e'er 1, ())) 7ere Dero-rated sa"es, p$rs$ant to Se!tion )8A 8(98a989 o t3e

N6RC o 00H.Petitioner a""eged t3at t3e a!!$$"ated inp$t ta&es or t3e period o Septe'er , 002 to %e!e'er 1, ())) 3a5e

not 'een app"ied against an# o$tp$t ta&.

@n 4ar!3 (, ())( and J$ne (2, ())(, petitioner i"ed t7o separate app"i!ations or t3e iss$an!e o ta& !redit !ertii!ates.@n J$"#

(*, ())(, in 5ie7 o respondent>s ina!tion, petitioner e"e5ated t3e !ase 'eore t3is Co$rt '# 7a# o a Petition or Re5ie7,

do!eted as C.T.A. Case No. +1.Tria" ens$ed and t3e CTA First %i5ision rendered a %e!ision on 1 J$ne ())H. 6t denied

petitioner>s !"ai or ai"$re to !op"# 7it3 t3e in5oi!ing re$ireents pres!ri'ed $nder Se!tion 1 in re"ation to Se!tion (1H o

t3e Nationa" 6nterna" Re5en$e Code 8N6RC9 o 00H and Se!tion *.)2- o Re5en$e Reg$"ations No. H-0+.@n appea", t3e CTA

En Ban! "ie7ise denied t3e !"ai o petitioner !iting 5io"ation o t3e in5oi!ing re$ireents.

6SSs !"ai or re$nd i"ed on (2 J$ne ())(, or or t3e period !o5ering @!to'er to %e!e'er ())).

6n t3is !ase, t3e :$di!ia" !"ai o petitioner 7as i"ed on (* J$"# ())(. Petitioner !"ear"# ai"ed to o'ser5e t3e andator# ()-da#

7aiting period. Conse$ent"#, t3e preat$re i"ing o its !"ai or re$ndM!redit o inp$t VAT 'eore t3e CTA 7arranted a

disissa", inas$!3 as no :$risdi!tion 7as a!$ired '# t3e CTA. 6n a!!ordan!e 7it3 t3e r$"ing in San Ro$e and !onsidering t3at

petitioner>s :$di!ia" !"ai 7as i"ed on (* J$"# ())(, 73en t3e ()1) da# andator# periods 7ere a"read# in t3e "a7 and B6R

R$"ing No. %A-*20-)1 3ad not #et 'een iss$ed, petitioner does not 3a5e an e&!$se or not o'ser5ing t3e () 1) da# period.

Fai"$re o petitioner to o'ser5e t3e andator# ()-da# period is ata" to its !"ai and rendered t3e CT A de5oid o :$risdi!tion

o5er t3e :$di!ia" !"ai.


4/15

. )o((issioner o$ Intern#l Revenue v. 'ichi %or&in& )o(p#n o$ 'si#, Inc., G.R. No. 18-82, 0 October 2010

[%EL CAST6LL@, J.]

FACTS

Respondent Ai!3i i"ed a !"ai or re$ndM!redit o inp$t VAT or t3e period J$"# , ())( to Septe'er 1), ())(, 7it3 t3e

petitioner Coissioner o 6nterna" Re5en$e 8C6R9, t3ro$g3 t3e %epartent o Finan!e 8%@F9 @ne-Stop S3op 6nter-Agen!# Ta&

Credit and %$t# %ra7'a! Center.@n e5en date, respondent i"ed a Petition or Re5ie7 7it3 t3e CTA or t3e re$ndM!redit o t3e

sae inp$t VAT. T3e CTA partia""# granted t3e petition. 6n a 4otion or Re!onsideration, petitioner arg$ed t3at t3e si$"taneo$s

i"ing o t3e adinistrati5e and t3e :$di!ia" !"ais !ontra5enes Se!tions ( and ((0 o t3e N6RC and a prior i"ing o an

adinistrati5e !"ai is a D!ondition pre!edent 'eore a :$di!ia" !"ai !an 'e i"ed. T3e CTA En Ban! aired t3e di5ision

r$"ing.

6SSs :$di!ia" and adinistrati5e !"ais or ta& re$ndM!redit 7ere i"ed 7it3in t3e t7o-#ear pres!ripti5eperiod as pro5ided in Se!tions (8A9 and ((0 o t3e N6RC.

?EL%

N@.

T3e t7o-#ear period to i"e a !"ai or ta& re$ndM!redit or t3e period J$"# , ())( to Septe'er 1), ())( e&pired on Septe'er

1), ())*. ?en!e, respondent>s adinistrati5e !"ai 7as tie"# i"ed.T3e i"ing o t3e :$di!ia" !"ai 7as preat$re. ?o7e5er,

not7it3standing t3e tie"# i"ing o t3e adinistrati5e !"ai, [t3e S$pree Co$rt is] !onstrained to den# respondent>s !"ai or

ta& re$ndM!redit or 3a5ing 'een i"ed in 5io"ation o Se!tion (8%9. Se!tion (8%9 o t3e N6RC !"ear"# pro5ides t3at t3e C6R

3as D() da#s, ro t3e date o t3e s$'ission o t3e !op"ete do!$ents in s$pport o t3e app"i!ation [or ta& re$ndM!redit],

7it3in 73i!3 to grant or den# t3e !"ai. 6n !ase o $"" or partia" denia" '# t3e C6R, t3e ta&pa#er>s re!o$rse is to i"e an appea"'eore t3e CTA 7it3in 1) da#s ro re!eipt o t3e de!ision o t3e C6R. ?o7e5er, i ater t3e ()-da# period t3e C6R ai"s to a!t

on t3e app"i!ation or ta& re$ndM!redit, t3e reed# o t3e ta&pa#er is to appea" t3e ina!tion o t3e C6R to CTA 7it3in 1) da#s.

6n t3is !ase, t3e adinistrati5e and t3e :$di!ia" !"ais 7ere si$"taneo$s"# i"ed on Septe'er 1), ())*. @'5io$s"#, respondent

did not 7ait or t3e de!ision o t3e C6R or t3e "apse o t3e ()-da# period. For t3is reason, 7e ind t3e i"ing o t3e :$di!ia" !"ai

7it3 t3e CTA preat$re. T3e preat$re i"ing o respondent>s !"ai or re$ndM!redit o inp$t VAT 'eore t3e CTA 7arrants a

disissa" inas$!3 as no :$risdi!tion 7as a!$ired '# t3e CTA.

. 3#scon# 3#n! )o. Inc. v. )o((issioner o$ Intern#l Revenue, G.R. No. 17121, 0 4#rch 2012

[PERALTA, J.]

FACTS

T3e Coissioner o 6nterna" Re5en$e 8C6R9 iss$ed an assessent against Las!ona Land Co., 6n!. 8Las!ona9 inoring t3e "atter

o its a""eged dei!ien!# in!oe ta& or t3e #ear 001 in t3e ao$nt o PH+1,(.+. Conse$ent"#, on Apri" (), 002, Las!ona

i"ed a "etter protest, '$t 7as denied '# Nor'erto R. @d$"io, @i!er-in-C3arge 8@6C9, Regiona" %ire!tor, B$rea$ o 6nterna"

Re5en$e, Re5en$e Region No. 2, 4aati Cit#. @n Apri" (, 000, Las!ona appea"ed t3e de!ision 'eore t3e CTA. Las!ona

a""eged t3at t3e Regiona" %ire!tor erred in r$"ing t3at t3e ai"$re to appea" to t3e CTA 7it3in t3irt# 81)9 da#s ro t3e "apse o t3e

2)-da# period rendered t3e assessent ina" and e&e!$tor#. T3e C6R, 3o7e5er, aintained t3at Las!ona>s ai"$re to tie"# i"e

an appea" 7it3 t3e CTA ater t3e "apse o t3e 2)-da# reg"eentar# period pro5ided $nder Se!tion ((2 o t3e Nationa" 6nterna"

Re5en$e Code 8N6RC9 res$"ted to t3e ina"it# o t3e assessent.


5/15

6SSs 'oos o a!!o$nt and ot3er a!!o$nting re!ords orinterna" re5en$e ta&es. Re5en$e %istri!t @i!er Jaie Con!ep!ion in5ited petitioner to send a representati5e to an inora"

!oneren!e or an opport$nit# to o':e!t and present do!$entar# e5iden!e re"ati5e to t3e proposed assessent. Petitioner>s

Coptro""er, LorenaTo"entino, e&e!$ted a D=ai5er o t3e Stat$te o Liitation


6/15

!ontep"ates !ases 73ere t3e period or assessent e&tends indeinite"# 'e!a$se t3is depri5es t3e ta&pa#er o t3e ass$ran!e t3at

it 7i"" no "onger 'e s$':e!ted to $rt3er in5estigation or ta&es ater t3e e&piration o a reasona'"e period o tie.

A 7ai5er o t3e stat$te o "iitations $nder t3e N6RC, to a !ertain e&tent, is a derogation o t3e ta&pa#ers> rig3t to se!$rit# against

pro"onged and $ns!r$p$"o$s in5estigations and $st t3ereore 'e !are$""# and stri!t"# !onstr$ed. &&& T3$s, t3e "a7 on

pres!ription, 'eing a reedia" eas$re, s3o$"d 'e "i'era""# !onstr$ed in order to aord s$!3 prote!tion.

T3e 7ai5er is a"so dee!ti5e ro t3e go5ernent side 'e!a$se it 7as signed on"# '# a re5en$e distri!t oi!er, not t3eCoissioner, as andated '# t3e N6RC and R4@ No. ()-0). T3e 7ai5er is not a $ni"atera" a!t '# t3e ta&pa#er or t3e B6R, '$t

is a 'i"atera" agreeent 'et7een t7o parties to e&tend t3e period to a date !ertain. T3e !onorit# o t3e B6R $st 'e ade '#

eit3er t3e Coissioner or t3e Re5en$e %istri!t @i!er. T3is !ase in5o"5es ta&es ao$nting to ore t3an @ne 4i""ion Pesos

8P,))),))).))9 and e&e!$ted a"ost se5en ont3s 'eore t3e e&piration o t3e t3ree-#ear pres!ription period. For t3is, R4@ No.

()-0) re$ires t3e Coissioner o 6nterna" Re5en$e to sign or t3e B6R.

8. )o((issioner o$ Intern#l Revenue v. 6u!os 4et#l )orpor#tion, G.R. 178087, 0 4# 2010

[%EL CAST6LL@, J.]

FACTS

T3e CTA En Ban! r$"ed or !an!e"ing t3e assessent noti!es iss$ed against respondent or 3a5ing 'een iss$ed 'e#ond t3epres!ripti5e period. 6t o$nd t3e irst =ai5er o t3e Stat$te o Liitations in!op"ete and dee!ti5e or ai"$re to !op"# 7it3 t3e

pro5isions o Re5en$e 4eorand$ @rder 8R4@9 No. ()-0). T3$s t3e 7ai5er ai"ed to indi!ate t3e date o a!!eptan!e. S$!3

date o a!!eptan!e is ne!essar# to deterine 73et3er t3e a!!eptan!e 7as ade 7it3in t3e pres!ripti5e period; And, t3e a!t o

re!eipt '# t3e ta&pa#er o 3is i"e !op# 7as not indi!ated on t3e origina" !op#. T3e re$ireent to $rnis3 t3e ta&pa#er 7it3 a

!op# o t3e 7ai5er is not on"# to gi5e noti!e o t3e e&isten!e o t3e do!$ent '$t a"so o t3e a!!eptan!e '# t3e B6R and t3e

pere!tion o t3e agreeent. T3e s$':e!t 7ai5er is t3ereore in!op"ete and dee!ti5e. As s$!3, t3e t3ree-#ear pres!ripti5e period

7as not to""ed or e&tended and !ontin$ed to r$n.

Petitioner arg$es t3at t3e go5ernent>s rig3t to assess ta&es is not 'arred '# pres!ription as t3e t7o 7ai5ers e&e!$ted '#

respondent, t3ro$g3 its a!!o$ntant, ee!ti5e"# to""ed or e&tended t3e period 7it3in 73i!3 t3e assessent !an 'e ade. 6n

disp$ting t3e !on!"$sion o t3e CTA t3at t3e 7ai5ers are in5a"id, petitioner !"ais t3at respondent is estopped ro adopting a

position !ontrar# to 73at it 3as pre5io$s"# taen. Petitioner insists t3at '# a!$ies!ing to t3e a$dit d$ring t3e period spe!iied in

t3e 7ai5ers, respondent "ed t3e go5ernent to 'e"ie5e t3at t3e Dde"a# in t3e pro!ess 7o$"d not 'e $ti"ied against it. T3$s,

respondent a# no "onger rep$diate t3e 5a"idit# o t3e 7ai5ers and raise t3e iss$e o pres!ription.Respondent aintains t3at

pres!ription 3ad set in d$e to t3e in5a"idit# o t3e 7ai5ers e&e!$ted '# Pas!o, 73o e&e!$ted t3e sae 7it3o$t an# 7ritten

a$t3orit# ro it, in !"ear 5io"ation o R%A@ No. +-).

6SS


7/15

9. %els *ner&, Inc. v. The Province o$ #t#ns #n! the O$$ice o$ the Provinci#l 'ssessor o$ #t#ns, G.R. No. 187, 1

%ebru#r 2007

[CALLEJ@, SR., J.]

FACTS

NPC entered into a "ease !ontra!t 7it3 Po"ar Energ#, 6n!. 8P@LAR9 o5er diese" engine po7er 'arges oored at Ba"a#an Ba# in

Ca"a!a, Batangas. T3e !ontra!t !ontained a pro5ision t3at P@LAR a# 'e or 'e!oe s$':e!t to rea" estate ta&es and assessents,

rates and ot3er !3arges in respe!t o t3e po7er 'arges.S$'se$ent"#, P@LAR assigned its rig3ts $nder t3e Agreeent to Fe"s

Energ#, 6n!. 8FELS9. Later, FELS re!ei5ed an assessent o rea" propert# ta&es on t3e po7er 'arges ro Pro5in!ia" Assessor,

t3at t3e o7ner or person 3a5ing "ega" interest a# appea" t3e atter 7it3in ) da#s ro re!eipt to t3e Board o Assessent

Appea"s o t3e pro5in!e. FELS reerred t3e atter to NPC, 73i!3 so$g3t re!onsideration o t3e Pro5in!ia" Assessor>s de!ision to

assess rea" propert# ta&es on t3e po7er 'arges. ?o7e5er, t3e otion 7as denied and t3e Pro5in!ia" Assessor ad5ised NPC to pa#

t3e assessent. Ater si&t# 8)9 da#s ro re!eipt o assessent ro, t3e NPC i"ed a petition 7it3 t3e Lo!a" Board o

Assessent Appea"s 8LBAA9 or t3e setting aside o t3e assessent and t3e de!"aration o t3e 'arges as non-ta&a'"e ites; it a"so

pra#ed t3at s3o$"d LBAA ind t3e 'arges to 'e ta&a'"e, t3e Pro5in!ia" Assessor 'e dire!ted to ae t3e ne!essar# !orre!tions.

6SSs appea" to LBAA a# prosper !onsidering t3at t3e tie"# i"ing o 4R 7it3 t3e Pro5in!ia" Assessor to""ed t3e

r$nning o reg"eenta# period.

?EL%

N@.

Se!tion (( o R.A. No. H), ot3er7ise no7n as t3e Lo!a" Go5ernent Code o 00, pro5idesDSECT6@N ((. Lo!a" Board

o Assessent Appea"s. O An# o7ner or person 3a5ing "ega" interest in t3e propert# 73o is not satisied 7it3 t3e a!tion o t3e

pro5in!ia", !it# or $ni!ipa" assessor in t3e assessent o 3is propert# a#, 7it3in si&t# 8)9 da#s ro t3e date o re!eipt o t3e

7ritten noti!e o assessent, appea" to t3e Board o Assessent Appea"s o t3e pro5in!e or !it# '# i"ing a petition $nder oat3 in

t3e or pres!ri'ed or t3e p$rpose, toget3er 7it3 !opies o t3e ta& de!"arations and s$!3 aida5its or do!$ents s$'itted in

s$pport o t3e appea". 6nstead o appea"ing to t3e Board o Assessent Appea"s 8as stated in t3e noti!e9, NPC opted to i"e aotion or re!onsideration o t3e Pro5in!ia" Assessor>s de!ision, a reed# not san!tioned '# "a7.

[Citing] t3e !ase o Ca""anta 5. @i!e o t3e @'$dsan, 73ere [t3e S$pree Co$rt] r$"ed t3at $nder Se!tion (( o R.A. No

H), t3e "ast a!tion o t3e "o!a" assessor on a parti!$"ar assessent s3a"" 'e t3e noti!e o assessent; it is t3is "ast a!tion 73i!3

gi5es t3e o7ner o t3e propert# t3e rig3t to appea" to t3e LBAA. T3e pro!ed$re "ie7ise does not perit t3e propert# o7ner t3e

reed# o i"ing a otion or re!onsideration 'eore t3e "o!a" assessor. 6t o""o7s ine"$!ta'"# t3at t3e )-da# period or aing

t3e appea" to t3e LBAA r$ns 7it3o$t interr$ption.

10. The Provinci#l 'ssessor o$ 4#rin!uue v. )ourt o$ 'ppe#ls #n! 4#rcopper 4inin&, G.R. No. 1702, 0 'pril 2009

[CALLEJ@, SR., J.]

FACTS

Petitioner iss$ed against respondent an Assessent Noti!e, dated 4ar!3 (2, 00*, or rea" propert# ta&es d$e on t3e "atter>s rea"

properties, in!"$ding its Si"tation %a and %e!ant S#ste 73i!3 7as daaged '# t#p3oon soetie in 001. Respondent paid

t3e ta& deanded, '$t appea"ed t3e assessent 'eore t3e Lo!a" Board o Assessent Appea"s 8LBAA9 on t3e gro$nd t3at t3e

s$':e!t propert# is e&ept ro rea" propert# ta&ation $nder Se!tion (1*8e9 o Rep$'"i! A!t 8R.A.9 No. H) or t3e Lo!a"

Go5ernent Code o 00, 73i!3 pro5ides or e&eptions ro Rea" Propert# Ta& or D4a!3iner# and e$ipent $sed or

po""$tion !ontro" and en5ironenta" prote!tion. T3e LBAA as 7e"" as t3e Centra" Board o Assessent Appea"s 8CBAA9 on


8/15

appea" r$"ed against ta& e&eption. T3e Co$rt o Appea"s re5ersed t3e r$"ings o LBAA and CBAA and 3e"d t3at t3e s$':e!t

propert# 7as e&ept ro rea" propert# ta&ation $nder Se!tion 0 o R.A. No. H0*( or t3e P3i"ippine 4ining A!t o 00+.

6SSs 'asis or its !"aied e&eption O Se!tion (1*8!9 o t3e LGC O is !"ear and not at a"" a'ig$o$s in its ters.

E&ept ro rea" propert# ta&ation are 8a9 a"" a!3ineries and e$ipent; 8'9 [t3at are] a!t$a""#, dire!t"#, and e&!"$si5e"# $sed

'#; 8!9 ["o!a" 7ater distri!ts and] go5ernent-o7ned or O!ontro""ed !orporations engaged in t3e [s$pp"# and distri'$tion o 7ater

andMor] generation and transission o e"e!tri! po7er.


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B# [B@T>s] e&press ters, BPPC 3as !op"ete o7ners3ip O 'ot3 "ega" and 'enei!ia" O o t3e pro:e!t, in!"$ding t3e a!3ineries

and e$ipent $sed, s$':e!t on"# to t3e transer o t3ese properties 7it3o$t !ost to NAP@C@R ater t3e "apse o t3e period

agreed $pon. As agreed $pon, BPPC pro5ided t3e $nds or t3e !onstr$!tion o t3e po7er p"ant, in!"$ding t3e a!3ineries and

e$ipent needed or po7er generation; t3ereater, it a!t$a""# operated and sti"" operates t3e po7er p"ant, $ses its a!3ineries

and e$ipent, and re!ei5es pa#ent or t3ese a!ti5ities and t3e e"e!tri!it# generated $nder a deined !opensation s!3ee.

Nota'"#, BPPC O as o7ner-$ser O is responsi'"e or an# dee!t in t3e a!3ineries and e$ipent.

Consistent 7it3 t3e B@T !on!ept and as ip"eented, BPPC O t3e o7ner-anager-operator o t3e pro:e!t O is t3e a!t$a" $ser o

its a!3ineries and e$ipent. BPPC>s o7ners3ip and $se o t3e a!3ineries and e$ipent are a!t$a", dire!t, and iediate,

73i"e NAP@C@R>s is !ontingent and, at t3is stage o t3e B@T Agreeent, not s$i!ient to s$pport its !"ai or ta& e&eption.

12. 'llie! #nin& )orpor#tion vs )o((issioner o$ Intern#l Revenue

Ta&ation O E&!eption to t3e R$"es o Pro!ed$re Regarding Protest and Appea"

6n Apri" ())*, t3e B$rea$ o 6nterna" Re5en$e 8B6R9 iss$ed a pre"iinar# assessent noti!e 8PAN9 to A""ied Baning

Corporation 8ABC9 deanding pa#ent o P+) i""ion in ta&es. ABC t3en i"ed a protest in 4a# ())*. 6n J$"# ())*, t3e B6R

iss$ed a ora" assessent noti!e 8FAN9. T3e FAN in!"$ded a ora" deand as 7e"" as t3is p3rase

&&&

T3is is o$r ina" de!ision 'ased on in5estigation. 6 #o$ disagree, #o$ a# appea" t3is ina" de!ision 7it3in t3irt# 81)9 da#s ro

re!eipt 3ereo, ot3er7ise said dei!ien!# ta& assessent s3a"" 'e!oe ina", e&e!$tor# and deanda'"e.

ABC t3en appea"ed t3e FAN 7it3 t3e Co$rt o Ta& Appea"s 8CTA9. T3e Coissioner o 6nterna" Re5en$e 8C6R9 t3en i"ed a

otion to disiss on t3e gro$nd t3at ABC did not e&3a$st a"" adinistrati5e reedies or ai"ing to i"e a protest against t3e FAN.

6SSs protest 73i!3, 73i"e ordering

t3e 7it3dra7a" and !an!e""ation o t3e dei!ien!# 7it33o"ding ta& assessent, nonet3e"ess reiterated t3e dei!ien!# %ST

assessent. B Ban re!ei5ed a !op# o t3e said de!ision on Jan$ar# +, ())1.

:el! T3e C6R 3as 1 #ears ro t3e date o a!t$a" i"ing o t3e ta& ret$rn or t3e "ast date pres!ri'ed '# "a7 or i"ing o t3e ta&

ret$rn, 73i!3e5er !oes "ater, to ae an assessent or to !oen!e !o$rt pro!eedings or !o""e!tion 7it3o$t an assessent.

=3en it 5a"id"# iss$es an assessent 7it3in t3e said 1-#ear period, it 3as anot3er 1 #ears 7it3in 73i!3 to !o""e!t t3e ta& d$e '#

distraint, "e5#, or !o$rt pro!eeding, 73i!3 period 'egins to r$n on t3e date t3e assessent noti!e 3ad 'een re"eased, ai"ed or sent

to t3e ta&pa#er. 6n t3is !ase, t3e C6R 3ad 1 #ears ro Apri" H, 020, or $nti" Apri" , 00(, 7it3in 73i!3 to !o""e!t t3e dei!ien!#

%ST. T3e 1-#ear pres!ripti5e period or !o""e!tion 7as not to""ed '# t3e i"ing o protest "etters '# B Ban. T3e a!t o re$esting a


10/15

rein5estigation a"one does not s$spend t3e period o pres!ription. T3e re$est s3o$"d irst 'e granted in order to ee!t

s$spension. T3e '$rden o proo t3at t3e re$est or rein5estigation 3ad 'een a!t$a""# granted s3a"" 'e on t3e C6R. T3ere is

not3ing in t3is !ase 73i!3 indi!ates, e&press"# or ip"ied"#, t3at t3e C6R 3ad granted t3e re$est or rein5estigation i"ed '# B

Ban. T3e inordinate de"a# o t3e C6R in a!ting $pon and reso"5ing t3e re$est or rein5estigation i"ed '# B Ban in !o""e!ting

t3e %ST a""eged"# d$e ro t3e "atter 3ad res$"ted in t3e pres!ription o t3e go5ernent>s rig3t to !o""e!t t3e dei!ien!#.

1-. S'NTOS vs. P*OP3* P% T:* P:I3IPPIN*S, G.R. 1717, 'u&ust 2, 2008

FACTS @n 0 4a# ())+, t3en B$rea$ o 6nterna" Re5en$e Coissioner G$i""ero L. Para#no, Jr. 7rote to t3e %epartent o

J$sti!e Se!retar# Ra$" 4. Gona"es a "etter regarding t3e possi'"e i"ing o !riina" !3arges against petitioner. A""eged"#

petitioner, in 3er Ann$a" 6n!oe Ta& Ret$rn or ta&a'"e #ear ())( i"ed 7it3 t3e B6R, de!"ared an in!oe o P2,)11,11(.H)

deri5ed ro 3er ta"ent ees so"e"# ro ABS-CBN. 6nitia" do!$ents gat3ered ro t3e B6R oi!es and t3ose gi5en '#

petitionerQs a!!o$ntant and t3ird parties, 3o7e5er, !onired t3at petitioner re!ei5ed in ())( in!oe in t3e ao$nt o at "east

P*,H0,(1*.H), not on"# ro ABS-CBN, '$t a"so ro ot3er so$r!es, s$!3 as o5ies and prod$!t endorseents. T3e estiated

ta& "ia'i"it# arising ro petitionerQs $nder de!"aration ao$nted to P,H2,0(+.+(, in!"$ding in!reenta" pena"ties; t3e non-

de!"aration '# petitioner o an ao$nt e$i5a"ent to at "east 2*.2K o t3e in!oe de!"ared in 3er ret$rn 7as !onsidered a

s$'stantia" $nder de!"aration o in!oe, 73i!3 !onstit$ted pria a!ie e5iden!e o a"se or ra$d$"ent ret$rn $nder Se!tion

(*28B9 o t3e N6RC, as aended.

6SS


11/15

Se!ond, t3e Co$rt 3as repeated"# prono$n!ed t3at parties $st !oe to !o$rt 7it3 !"ean 3ands. Parties 73o do not !oe to !o$rt

7it3 !"ean 3ands !annot 'e a""o7ed to 'eneit ro t3eir o7n 7rongdoing.

T3ird, respondent is estopped ro $estioning t3e 5a"idit# o its =ai5ers. =3i"e it is tr$e t3at t3e Co$rt 3as repeated"# 3e"d t3at

t3e do!trine o estoppe" $st 'e sparing"# app"ied as an e&!eption to t3e stat$te o "iitations or assessent o ta&es, t3e Co$rt

inds t3at t3e app"i!ation o t3e do!trine is :$stiied in t3is !ase. Veri"#, t3e app"i!ation o estoppe" in t3is !ase 7o$"d proote t3e

adinistration o t3e "a7, pre5ent in:$sti!e and a5ert t3e a!!op"is3ent o a 7rong and $nd$e ad5antage. Respondent e&e!$ted

i5e =ai5ers and de"i5ered t3e to petitioner, one ater t3e ot3er. 6t a""o7ed petitioner to re"# on t3e and did not raise an#

o':e!tion against t3eir 5a"idit# $nti" petitioner assessed ta&es and pena"ties against it. 4oreo5er, t3e app"i!ation o estoppe" is

ne!essar# to pre5ent t3e $nd$e in:$r# t3at t3e go5ernent 7o$"d s$er 'e!a$se o t3e !an!e""ation o petitioner>s assessent o

respondent>s ta& "ia'i"ities.

1. *RI)SSON T*3*)O44


12/15

or in!oe or a ta&a'"e #ear 7i"" deinite"# in!"$de its gross re!eipts a"read# reported d$ring t3e pre5io$s #ear and or 73i!3

"o!a" '$siness ta& 3as a"read# 'een paid.

17. 4#nil# North Toll#s )orpor#tion vs. The 4unicip#lit o$ Gui&uinto ul#c#n, )T' ') No. 82, "ece(ber 0, 2012

The operator of the North Expressway falls within the classification of a contractor subject to local business tax based on its

gross receipts.

T3e ta&pa#er 7as granted '# t3e go5ernent t3e !on!ession to inan!e, design, re3a'i"itate, operate and aintain t3e Nort3

L$on E&press7a# 8NLE9. For aintaining and operating t3e NLE, ta&pa#er !3arges to"" ees on its $sers. T3e 4$ni!ipa"it#

o G$ig$into, B$"a!an assessed t3e ta&pa#er or "o!a" '$siness ta& on its to"" p"aas "o!ated in Ta'ang and Santa Rita and t3e

distri!t oi!e in Santa Rita. T3e 'asis o t3e assessent is t3e gross re5en$e. T3e Co$rt agreed t3at t3e to"" p"aas in Ta'ang and

Santa Rita and t3e distri!t oi!e are !onsidered 'ran!3es "ia'"e to "o!a" '$siness ta&es. ?o7e5er, t3e Co$rt !an!e""ed t3e

assessent on t3e gro$nd t3at t3e 'asis is erroneo$s. A!!ording to t3e Co$rt, sin!e t3e '$siness o t3e ta&pa#er is to aintain and

operate NLE or a ee, it a""s 7it3in t3e !"assii!ation o a D!ontra!tor deined $nder Se!tion 1839 o t3e Lo!a" Go5ernent

Code 8DLGC9. As s$!3, its "ia'i"it# as a !ontra!tor s3o$"d 'e !op$ted on t3e 'asis o Se!tion *18e9 o t3e LGC, 73i!3

iposes ta& 'ased on gross re!eipts. A!!ording"#, t3e Co$rt !an!e""ed t3e assessent 73i!3 7as 'ased on gross re5en$e or "a!

o "ega" ooring.

18. "rilon v. 3i(, G.R. No. 112-97, 'u&ust -, 199-

FACTS

P$rs$ant to Se!tion 2H o t3e Lo!a" Go5ernent Code, t3e Se!retar# o J$sti!e 3ad, on appea" to 3i o o$r oi" !opanies and

a ta&pa#er, de!"ared @rdinan!e No. HH0*, ot3er7ise no7n as t3e 4ani"a Re5en$e Code, n$"" and 5oid or non-!op"ian!e 7it3

t3e pres!ri'ed pro!ed$re in t3e ena!tent o ta& ordinan!es and or !ontaining !ertain pro5isions !ontrar# to "a7 and p$'"i!

po"i!#. 6n a petition or !ertiorari i"ed '# t3e Cit# o 4ani"a, t3e RTC de!"ared Se!tion 2H o t3e Lo!a" Go5ernent Code as

$n!onstit$tiona" 'e!a$se o its 5est$re in t3e Se!retar# o J$sti!e o t3e po7er o !ontro" o5er "o!a" go5ernents in 5io"ation o

t3e po"i!# o "o!a" a$tono# andated in t3e Constit$tion and o t3e spe!ii! pro5ision t3erein !onerring on t3e President o t3e

P3i"ippines on"# t3e po7er o s$per5ision o5er "o!a" go5ernents. 6n t3is !ase, J$dge Rodo"o C. Pa"attao de!"ared Se!tion 2H

$n!onstit$tiona" insoar as it epo7ered t3e Se!retar# o J$sti!e to re5ie7 ta& ordinan!es. ?e !ited t3e ai"iar distin!tion

'et7een !ontro" and s$per5ision, t3e irst 'eing t3e po7er o an oi!er to a"ter or odi# or set aside 73at a s$'ordinate oi!er

3ad done in t3e peroran!e o 3is d$ties and to s$'stit$te t3e :$dgent o t3e orer or t3e "atter, 73i"e t3e se!ond is t3e

po7er o a s$perior oi!er to see to it t3at "o7er oi!ers peror t3eir $n!tions in a!!ordan!e 7it3 "a7.

6SS


13/15

19. :'GONO= 4'R6*T /*N"OR 'SSO)I'TION vs. 4>2002

FACTS @n @!to'er , 00, t3e Sangg$niang Ba#an o ?agono#, B$"a!an, ena!ted an ordinan!e, a$t$san B"g. (2, 73i!3

in!reased t3e sta"" renta"s o t3e aret 5endors in ?agono#. Arti!"e 1 pro5ided t3at it s3a"" tae ee!t $pon appro5a". T3e

s$':e!t ordinan!e 7as posted ro No5e'er *-(+, 00. 6n t3e "ast 7ee o No5e'er, 00H, t3e petitioner>s e'ers 7ere

persona""# gi5en !opies o t3e appro5ed @rdinan!e and 7ere inored t3at it s3a"" 'e enor!ed in Jan$ar#, 002. @n %e!e'er 2,

00H, t3e petitioner>s President i"ed an appea" 7it3 t3e Se!retar# o J$sti!e assai"ing t3e !onstit$tiona"it# o t3e ta& ordinan!e.

Petitioner !"aied it 7as $na7are o t3e posting o t3e ordinan!e.

Respondent opposed t3e appea". 6t !ontended t3at t3e ordinan!e too ee!t on @!to'er , 00 and t3at t3e ordinan!e, as

appro5ed, 7as posted as re$ired '# "a7. ?en!e, it 7as pointed o$t t3at petitioner>s appea", ade o5er a #ear "ater, 7as a"read#

tie-'arred. T3e Se!retar# o J$sti!e disissed t3e appea" on t3e gro$nd t3at it 7as i"ed o$t o tie, i.e., 'e#ond t3irt# 81)9 da#s

ro t3e ee!ti5it# o t3e @rdinan!e on @!to'er , 00, as pres!ri'ed $nder Se!tion 2H o t3e 00 Lo!a" Go5ernent Code.

Citing t3e !ase o Taada 5s. T$5era, t3e Se!retar# o J$sti!e 3e"d t3at t3e date o ee!ti5it# o t3e s$':e!t ordinan!e retroa!ted to

t3e date o its appro5a" in @!to'er 00, ater t3e re$ired p$'"i!ation or posting 3as 'een !op"ied 7it3, p$rs$ant to Se!tion 1

o said ordinan!e.

6SSt Code re$ires t3at an appea" o a ta& ordinan!e or re5en$e eas$re s3o$"d 'e

ade to t3e Se!retar# o J$sti!e 7it3in t3irt# 81)9 da#s ro ee!ti5it# o t3e ordinan!e and e5en d$ring its penden!#, t3eee!ti5it# o t3e assai"ed ordinan!e s3a"" not 'e s$spended. 6n t3e !ase at 'ar, 4$ni!ipa" @rdinan!e No. (2 too ee!t in

@!to'er 00. Petitioner i"ed its appea" on"# in %e!e'er 00H, ore t3an a #ear ater t3e ee!ti5it# o t3e ordinan!e in 00.

C"ear"#, t3e Se!retar# o J$sti!e !orre!t"# disissed it or 'eing tie-'arred. At t3is point, it is apropos to state t3at t3e

tierae i&ed '# "a7 or parties to a5ai" o t3eir "ega" reedies 'eore !opetent !o$rts is not a Dere te!3ni!a"it# t3at !an 'e

easi"# 'r$s3ed aside. T3e periods stated in Se!tion 2H o t3e Lo!a" Go5ernent Code are andator#. @rdinan!e No. (2 is a

re5en$e eas$re adopted '# t3e $ni!ipa"it# o ?agono# to i& and !o""e!t p$'"i! aret sta"" renta"s. Being its "ie'"ood,

!o""e!tion o re5en$es '# t3e go5ernent is o parao$nt iportan!e. T3e $nds or t3e operation o its agen!ies and pro5ision

o 'asi! ser5i!es to its in3a'itants are "arge"# deri5ed ro its re5en$es and !o""e!tions. T3$s, it is essentia" t3at t3e 5a"idit# o

re5en$e eas$res is not "et $n!ertain or a !onsidera'"e "engt3 o tie. ?en!e, t3e "a7 pro5ided a tie "iit or an aggrie5ed

part# to assai" t3e "ega"it# o re5en$e eas$res and ta& ordinan!es.

20. Rees vs )ourt o$ 'ppe#ls, GR No. 1182, "ece(ber 10, 1999, 20 S)R' -8

Fa!ts T3e Sangg$niang Ba#an o San J$an, 4etro 4ani"a ip"eented se5era" ta& ordinan!es O 2H, 0, 0+, )) and ). @n4a# (, 001, petitioners i"ed an appea" 7it3 t3e %epartent o J$sti!e assai"ing t3e !onstit$tiona"it# o t3ese ta& ordinan!es

a""eged"# 'e!a$se t3e# 7ere pro$"gated 7it3o$t pre5io$s p$'"i! 3earings t3ere'# !onstit$ting depri5ation o propert# 7it3o$t

d$e pro!ess o "a7. ?o7e5er t3e sae 7as disissed.

6ss$e =3et3er or not t3e assai"ed ordinan!es are 5a"id.

?e"d es. A $ni!ipa" ta& ordinan!e epo7ers a "o!a" go5ernent $nit to ipose ta&es. T3e po7er to ta& is t3e ost ee!ti5e

7a# or instr$ent to raise needed re5en$es to inan!e and s$pport t3e #riad a!ti5ities o t3e "o!a" go5ernent $nits or de"i5er#

o 'asi! ser5i!es essentia" to t3e prootion o genera" 7e"are and en3an!eent o pea!e, progress and prosperit# o t3e peop"e.

Conse$ent"#, an# de"a# in ip"eenting ta& eas$res 7o$"d 'e to t3e detrient o t3e p$'"i!. 6t is or t3is reason t3at protest

o5er ta& ordinan!e are re$ired to 'e done 7it3in !ertain tie raes. 6n t3e instant !ase, it is o$r 5ie7 t3at t3e ai"$re o

petitioners to appea" to t3e se!retar# o :$sti!e 7it3in 1) da#s as re$ired '# se!tion 2H o Rep$'"i! A!t No. H) is ata" to t3eir

!a$se.

Petitioners 3a5e not pro5ed in t3e !ase 'eore $s t3at t3e Sangg$niang Ba#an o San J$an ai"ed to !ond$!t t3e re$ired p$'"i!

3earings 'eore t3e ena!tent o @rdinan!es 2H, 0+, 0, )), and ). A"t3o$g3 t3e Sangg$nian 3ad t3e !ontro" o re!ords or

'etter eans o proo regarding t3e a!ts a""eged, petitioners are not re"ie5ed ro t3e '$rden o pro5ing t3eir a5erents. Proo

t3at p$'"i! 3earings 7ere not 3e"d a""s on t3e petitioner>s s3o$"ders. For ai"ing to dis!3arge t3at '$rden, t3eir petition 7as

proper"# disissed.

For t3e p$rpose o se!$ring !ertaint# 73ere do$'t 7o$"d 'e into"era'"e, it is a genera" r$"e t3at t3e reg$"arit# o t3e ena!tent o

an oi!ia""# pro$"gated stat$te or ordinan!e a# not 'e ipea!3ed '# paro" e5iden!e or ora" testion# eit3er o indi5id$a"


14/15

oi!ers and e'ers, or o strangers 73o a# 'e interested in n$""i#ing "egis"ati5e a!tion. T3is r$"es s$pp"eents t3e

pres$ption in a5or o t3e reg$"arit# o oi!ia" !ond$!t 73i!3 7e 3a5e $p3e"d repeated"#, a'sent a !"ear s3o7ing to t3e

!ontrar#.

21. 3ope? v. )it o$ 4#nil#, GR No. 12719, %eb. 19, 1999

FACTS Se!tion (0 o Rep$'"i! A!t H) 8R.A. H)9 or t3e Lo!a" Go5ernent Code o 00 re$ires t3e !ond$!t o t3e

genera" re5ision o rea" propert#.

T3e re5ision o rea" propert# assessents pres!ri'ed t3erein 7as not #et enor!ed in t3e Cit# o 4ani"a. s @i!e s$'itted t3e proposed s!3ed$"e o air aret 5a"$es to t3e Cit# Co$n!i" or its appropriate a!tion.

T3e !o$n!i" t3en ena!ted 4ani"a @rdinan!e No. H20* 73i!3 7as appro5ed. =it3 t3e ip"eentation o t3e ordinan!e, t3e ta& on

t3e "and o7ned '# t3e petitioner 7as in!rease 3en!e 3e i"ed a spe!ia" pro!eeding or t3e de!"aration o n$""it# o t3e Cit# o

4ani"a @rdinan!e No. H20* or 'eing D$n:$st, e&!essi5e, oppressi5e or !onis!ator#.

4ani"a @rdinan!e No. H0)+ too ee!t t3ereater, red$!ing '# it# per!ent 8+)K9 t3e assessent "e5e"s 8depending on t3e $se o

propert#, e.g., residentia", !oer!ia"9 or t3e !op$tation o ta& d$e. T3e ne7 ordinan!e aended t3e assessent "e5e"s

pro5ided '# Se!tion H*, paragrap3 8A9 o 4ani"a @rdinan!e No. HH0*..

%espite t3e aendent 'ro$g3t a'o$t '# 4ani"a @rdinan!e No. H0)+, t3e !ontro5ers# pro!eeded.

T3e tria" !o$rt disissed t3e !ase or ai"$re o t3e petitioner to e&3a$st adinistrati5e reedies.

6SSs opinion, 3o7e5er, t3e instant petition does not a"" 7it3in an# o t3e e&!eptions a'o5e-entioned.

2. )it o$ 4##ti #n! The O$$ice O$ The )it Tre#surer o$ 4##ti )it vs. Nippon *;press Philippines )orpor#tion,

)T' ') )#se No. 7, %ebru#r 17, 2012

Revenues of branches or sales outlet elsewhere should not be part of the tax base for the determination of the local business tax

to be paid in the City where the principal office is located.


15/15

S!ES N"T #R"#ER!$ T%E& 'N (RNC) "**'CE CN "N!$ (E S+(,ECT T" &E*'C'ENC$ (+S'NESS T%ES

#$(!E -)ERE T)E (RNC) 'S !"CTE& N& S)"+!& N"T (E 'NC!+&E& 'N T)E C"#+TT'"N "* (+S'NESS

T%ES 'N T)E )"E "**'CE.

Ta&pa#er 3as its prin!ipa" oi!e and a"so a 'ran!3 in t3e Cit# o 4aati. At t3e sae tie, it 3as 'ran!3es in t3e !ities o

Parana$e and Ce'$. T3e Cit# Treas$rer o 4aati assessed t3e ta&pa#er or dei!ien!# "o!a" '$siness ta& or sa"es o t3e

Parana$e 'ran!3 a""eged"# not de!"ared in t3e Cit# o Parana$e. T3e Cit# o 4aati aintained t3at it 3ad t3e a$t3orit# to

assess '$siness ta&es on re5en$es not proper"# ta&ed in Parana$e Cit# and Ce'$ Cit#.

Citing t3e r$"es on t3e sit$s o ta&ation as pro5ided in t3e 4aati Re5en$e Code and t3e Lo!a" Go5ernent Code o 00, t3e

Co$rt r$"ed t3at t3e "a7 is !"ear t3at or p$rposes o !o""e!tion o "o!a" ta&es, '$sinesses aintaining or operating 'ran!3 or sa"es

o$t"et e"se73ere s3a"" re!ord t3e sa"e in t3e 'ran!3 or sa"es o$t"et aing t3e sa"e or transa!tion, and t3e ta& t3ereon s3a"" a!!r$e

and s3a"" 'e paid to t3e $ni!ipa"it# 73ere s$!3 'ran!3 or sa"es o$t"et is "o!ated. T3$s, t3e re5en$es o t3e 'ran!3es o$tside

4aati s3o$"d not 'e part o t3e ta& 'ase or t3e deterination o t3e "o!a" '$siness ta& to 'e paid in t3e Cit# o 4aati. And

e5en ass$ing t3at t3ere 7as $nder-de!"aration or isde!"aration o t3e tota" ta&a'"e earnings in its Parana$e Cit# 'ran!3, t3e

ta& proper"# 'e"ongs to t3e Cit# o Parana$e. T3e a!tion o t3e Cit# Treas$rer o 4aati is iperissi'"e, 'e!a$se to do so

7o$"d 'e san!tioning or en!roa!3ing $pon t3e prerogati5es o anot3er !o-e$a" and a$tonoo$s "o!a" go5ernent.

Documents

Case Digests for Taxation 2