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Tax II Final Case Digests
Tax II Final Case Digests
MANILA STAR
FERRY
G.R. No. L-31776-78 October 21, 1993
FACTS:
HELD:
"entry" in sections 1301 and 1801 of the tcc
refers to both the ied and ieird.
Under Section 1301 of the TCC, imported
articles must be entered within a nonextendible period of 30 days from the date of
discharge of the last package from a vessel.
Otherwise, the BOC will deem the imported
goods impliedly abandoned under Section
1801. Thus:
Section 1301. Persons Authorized
to Make Import Entry. - Imported
articles must be entered in the
customhouse at the port of entry
within thirty (30) days, which
shall not be extendible from date
of discharge of the last package
from the vessel or aircraft either
(a) by the importer, being holder
of the bill of lading, (b) by a duly
licensed customs broker acting
under authority from a holder of
the bill or (c) by a person duly
empowered to act as agent or
attorney-in-fact for each holder:
Provided, That where the entry is
filed by a party other than the
importer, said importer shall
himself be required to declare
under oath and under the
penalties
of
falsification
or
perjury that the declarations and
statements contained in the entry
are true and correct: Provided,
further, That such statements
under oath shall constitute prima
facie evidence of knowledge and
consent of the importer of
violation
against
applicable
provisions of this Code when the
importation is found to be
unlawful. (Emphasis supplied)
Section 1801. Abandonment,
Kinds and Effect of. - An
imported article is deemed
abandoned under any of the
following circumstances:
xxx xxx xxx
b. When the owner, importer,
consignee or interested party
after due notice, fails to file an
entry within thirty (30) days,
which shall not be extendible,
from the date of discharge of
the last package from the
vessel or aircraft, or having
filed such entry, fails to claim
ASSIGNEE
has
in
turn
utilized/applied the same with
the [BOC] or Bureau of Internal
Revenue [BIR] for payment of
each duty/tax obligations.
3. ASSIGNEE undertakes to
issue to ASSIGNOR the Tax
Credit
corresponding
credit
notes, as when the above
duty/taxes credit certificates
was (sic) use[d]/applied, either
partially
or
fully
by
the
ASSIGNEE,
in
payment
of
ASSIGNEEs
duty/taxes
obligation with the [BOC] or
[BIR], respectively.
warehousing
services;
lessors
or
distributors of cinematographic films;
persons engaged in milling, processing,
manufacturing or repacking goods for
others; proprietors, operators or keepers
of hotels, motels, resthouses, pension
houses, inns, resorts; proprietors or
operators of restaurants, refreshment
parlors, cafes and other eating places,
including clubs and caterers; dealers in
securities;
lending
investors;
transportation
contractors
on
their
transport of goods or cargoes, including
persons who transport goods or cargoes
for hire and other domestic common
carriers by land relative to their
transport of goods or cargoes; common
carriers by air and sea relative to their
transport of passengers, goods or
cargoes
from
one
place
in
the
Philippines to another place in the
Philippines; sales of electricity by
generation companies, transmission, and
distribution
companies; services
of
franchise grantees of electric utilities,
telephone and telegraph, radio and
television broadcasting and all other
franchise grantees except those under
Section 119 of this Code and non-life
insurance companies (except their crop
insurances), including surety, fidelity,
indemnity and bonding companies; and
similar services regardless of whether or
not the performance thereof calls for the
exercise or use of the physical or mental
faculties. (Underscoring supplied)
It is plain from the above that the law
imposes VAT on all kinds of services rendered
in the Philippines for a fee, including those
specified in the list. The enumeration of
affected services is not exclusive. [11] By
qualifying services with the words all kinds,
Congress has given the term services an allencompassing meaning. The listing of specific
services are intended to illustrate how
pervasive and broad is the VATs reach rather
than establish concrete limits to its
application. Thus, every activity that can be
imagined as a form of service rendered for a
fee should be deemed included unless some
provision of law especially excludes it.
Now, do tollway operators render services for
a fee? Presidential Decree (P.D.) 1112 or the
Toll Operation Decree establishes the legal
basis for the services that tollway operators
render. Essentially,
tollway
operators
construct,
maintain,
and
operate
expressways, also called tollways, at the
operators
expense. Tollways
serve
as
alternatives to regular public highways that
Code,
the MIAA Airport Lands and
Buildings are properties of public
dominion and thus owned by the State
or the Republic of the Philippines.
x x x The operation by the government
of a tollway does not change the
character of the road as one for public
use. Someone
must
pay
for the
maintenance of the road, either the
public indirectly through the taxes they
pay the government, or only those
among the public who actually use the
road through the toll fees they pay upon
using the road. The tollway system is
even a more efficient and equitable
manner of taxing the public for the
maintenance of public roads.
The charging of fees to the public does
not determine the character of the
property whether it is for public
dominion or not. Article 420 of the Civil
Code defines property of public dominion
as one intended for public use. Even if
the government collects toll fees, the
road is still intended for public use if
anyone can use the road under the same
terms and conditions as the rest of the
public. The
charging
of
fees,
the
limitation on the kind of vehicles that
can use the road, the speed restrictions
and other conditions for the use of the
road do not affect the public character of
the road.
The terminal fees MIAA charges to
passengers, as well as the landing fees
MIAA charges to airlines, constitute the
bulk of the income that maintains the
operations of MIAA.The collection of
such fees does not change the character
of MIAA as an airport for public use.
Such fees are often termed users tax.
This means taxing those among the
public who actually use a public facility
instead of taxing all the public including
those who never use the particular
public facility. A users tax is more
equitable
a
principle
of
taxation
mandated in the 1987 Constitution.
[23]
(Underscoring supplied)
As can be seen, the discussion in
the MIAA case on toll roads and toll fees was
made, not to establish a rule that tollway fees
are users tax, but to make the point that
airport lands and buildings are properties of
public dominion and that the collection of
terminal fees for their use does not make
them private properties. Tollway fees are not
[13]
September 4,
2012
FACTS:
Petitioner was a real estate developer that
bought from the national government a parcel
of land that used to be the Fort Bonifacio
reservation, now For Bonifacio Global City. At
On
January
24,
2004,
private
respondents filed before the RTC of
Pasay City the complaint denominated
as one for Refund or Recovery of
Illegally and/or ErroneouslyCollected
Local Business Tax, Prohibition with
Prayer to Issue TRO and Writ of
Preliminary Injunction.
Petitioners
filed
a
Motion
for
Reconsideration but the RTC denied.
Petitioners then filed a special civil
action for certiorari with the CA but the
CA dismissed petitioners petition
for certiorari holding that it has no
jurisdiction over the said petition.
Petitioners
filed
a
Motion
for
Reconsideration, but the CA denied it
in its Resolution hence, this petition
ISSUE:
Whether or not the CTA has
jurisdiction over a special civil
action for certiorari assailing an
interlocutory order issued by the
RTC in a local tax case.
HELD:
Petition is denied
Consistent
with
the
above
pronouncement, the Court has held as
early as the case of J.M. Tuason & Co.,
Inc. v. Jaramillo, et al. [118 Phil. 1022
(1963)] that if a case may be
appealed to a particular court or
judicial tribunal or body, then said
court or judicial tribunal or body has
jurisdiction to issue the extraordinary
writ of certiorari, in aid of its appellate
jurisdiction.
This
principle
was
affirmed in De Jesus v. Court of
Appeals (G.R. No. 101630, August 24,
1992) where the Court stated that a
court may issue a writ of certiorari in
aid of its appellate jurisdiction if said
court has jurisdiction to review, by
appeal or writ of error, the final orders
or decisions of the lower court.
HELD: NO .
HELD: No.
Section 28(3), Article
Constitution provides:
VI
of
the
1987
exempt
from
ISSUE 3:
Whether or not CASURECO is correct in
maintaining tah it is exempt from
payment of FRANCHISE tax because of
its nature as a non profit cooperative as
contemplated in PD 269, and insists that
only entities engaged in business, and
not non-profit entities like itself, are
subject to the said franchise tax.
RULING:
NO. The Court is not persuaded.
In National Power Corporation v. City of
Cabanatuan,29 the Court declared that "a
franchise tax is a tax on the privilege of
transacting business in the state and
exercising corporate franchises granted by
the state."30rll It is not levied on the
corporation simply for existing as a
corporation, upon its property or its income,
but on its exercise of the rights or privileges
granted to it by the government.31rll "It is
within this context that the phrase tax on
businesses enjoying a franchise in Section
137 of the LGC should be interpreted and
understood."32rllrll
Thus, to be liable for local franchise tax, the
following requisites should concur: (1) that
one has a "franchise" in the sense of a
secondary or special franchise; and (2) that it
is exercising its rights or privileges under this
RULING:
Again, the Court is not convinced.
It should be stressed that what the petitioner
seeks to collect from CASURECO III is a
franchise tax, which as defined, is a tax on
the exercise of a privilege. As Section
13735rll of the LGC provides, franchise tax
shall be based on gross receipts precisely
because it is a tax on business, rather than on
persons or property.36rll Since it partakes
of the nature of an excise tax/37rll the
situs of taxation is the place where the
privilege is exercised, in this case in the City
of Iriga, where CASURECO III has its principal
office and from where it operates, regardless
of the place where its services or products are
delivered. Hence, franchise tax covers all
gross receipts from Iriga City and the
Rinconada area.