I want to share this article by Ed Sicam I read from Yahoo! Philippines.

This is the first time I am borrowing an article from another writer and I intended nothing but sharing his article for wider dissemination.

February 25, 2011 marks the 25th anniversary of the People Power revolution at EDSA that ousted a dictator. To mark the occasion, ABS-CBN has been airing a music video using a rearranged version of Jim Paredes’s composition “Handog ng Pilipino sa Mundo” with Martin Nievera, Gary V, Zsa Zsa Padilla, Vina Morales, Erik Santos, Piolo Pascual, Christian Bautista, Toni Gonzaga, Sam Milby, Juris, Aiza Seguerra, Yeng Constantino and Jovit Baldivino providing the vocals.

It’s interesting to note that aside from the first four names on this list and Piolo, who was already nine years old, the rest were mere toddlers during the EDSA phenomenon. Jovit was not even born yet.

The almost four-minute video is a glossy production that includes stock footage from the 1986 event and scenes specially shot for the occasion. One frame shows a listing of several countries who were influenced by our brand of People Power. The singers perform in front of colorful banners that capture the celebratory mood of the video. Gary V, Martin and Christian easily shone over the others.

I liked the introduction of kids joining the singing in a garden setting. Who knows, 25 years from now, they may still be around to observe the 50th year of EDSA 1. What almost destroyed my appreciation for the Kapamilya project was the use of a few notes from the ABS-CBN jingle at the end of the video. Well, the network spent for this production so let’s give it to them

I spoke to “Handog’s” composer two days ago and asked him to go back in time and recall how this anthem was created. Jim said it took him around three minutes to compose the song sometime in March when the euphoria over the triumph at Edsa was still at its peak. He explained that the idea for the song was probably gestating inside him months before Feb. 25. So when he sat down and played the first few notes on the piano, the melody and the lyrics just started rushing in:

‘Di na 'ko papayag mawala ka muli.
'Di na 'ko papayag na muli mabawi,
Ating kalayaan kay tagal natin mithi.
'Di na papayagang mabawi muli.

All the way to the song’s conclusion:

Mapayapang paraang pagbabago.
Katotohanan, kalayaan, katarungan.
Ay kayang makamit na walang dahas.
Basta't magkaisa tayong lahat!

The lyrics that stood out for me was “Kay sarap palang maging Pilipino.” which was how almost everyone felt back in ’86.

After finishing the song, he brought it to Apo’s recording company, WEA Records, which was putting together an album of patriotic songs. “Handog” was going to be the carrier single. Jim then invited singers who were identified with EDSA--Apo’s Danny Javier and Buboy Garrovillo, CelesteLegaspi, Kuh Ledesma, Ivy Violan, Subas Herrero, Noel Trinidad, Becky Demetillo, Edru Abraham, Lester Demetillo, Joseph Olfindo, Inang Laya, Coritha and Eric -- to record the song. Except for a few names, not exactly a star-studded line-up but it was their convictions that mattered. Kris Aquino, a bubbly teeny-bopper then, surprised everyone when she showed up at the studio.

Jim had also asked respected film director Mike de Leon to shoot a music video. He had worked with Mike before in the movie, “Kung Mangarap Ka’t Magising.” What Mike came up with was a simple low-budget film tracing the Filipino’s struggle for independence against the Spaniards, the Americans, the Japanese and then later the Marcos dictatorship. There were shots of heroes like Jose Rizal, Andres Bonifacio and Apolinario Mabini then later prominent figures who fought Marcos like Jose Diokno, Lorenzo Tañada, Joker Arroyo, Rene Saguisag Joe Burgos and of course, Ninoy and Cory Aquino.

Jim admits that he was influenced by the music video “We Are the World” by the USA for Africa where several pop singers sang the composition of Michael Jackson and Lionel Richie. The “Handog” music video was played so many times on TV that year and years and decades later, several versions have surfaced on YouTube including the latest one by ABS-CBN.

Remember the movie 8 Seconds? I forgot the names of the casts there but the movie was about riding a wild bull inside the arena and one has to stay there for as long as 8 seconds in order to qualify or win. That is how a layperson explains that sport (or is it even a sport?).

So this song was the theme of that movie. Each time I hear this song, I always imagine the main character of the movie riding a wild bull. I have always liked that movie, in fact I bought the soundtrack back then. It was still in cassette tape form, I don't know if it is available in CD form these days.

I love it when I am surrounded with love because it makes my day lighter. I love talking about love, that shouldn't be a wonder. Love creates love right? So when I am so down, really down or sad or confused, I just remember how lucky am I to be loved.

I couldn't believe I used to memorize the lyrics of this song by heart. Must be that I was so full or love back then... full of energy even! Huh! How time flies! How easily I could forget!

Thanks for you time. Til next love blog!

Standing Right Next To Me lyrics

Love is like the wind,
Sometimes it blows your way,
And until now
It missed me somehow.

But when I turned around
I saw you standing there.
The sound of your voice -
I had no choice.

I used to have a wish
One day I'd feel like this.
Now I know love exists
Cause it's standing right next to me.

Beneath the moon tonight
I see it in your eyes -
No more false starts,
No more broken hearts.

I used to have a wish
One day I'd feel like this.
Now I know love exists
Cause it's standing right next to me.

Even in the dark,
Even when you're gone
I feel you in my heart.

I used to have a wish
One day I'd feel like this.
Now I know love exists
Cause it's standing right next to me

Standing right next to me.

http://www.stlyrics.com/lyrics/8seconds/standingrightnexttome.htm

Have you tried listening to this song while you are alone and lonely? I had... just now, while I am in front of my computer, reading for my class.

I am alone and became lonely as soon as I heard the introductory tune of this song.

Love month is here and I thought "what a nice was to start a love blog special this Feb".

Not because the story of the song is sad but because its music is really a masterpiece, it is so pleasing in the ears, really. Anyway, regardless of the story of this song, I think it is still blog-worthy because love always entail sadness and pain, isn't it?

One would never realize the value of love if one hasn't felt pain or hatred or bitterness.

All of us did... unless you'd tell me you haven't had sad experiences in love. If so, please tell me your story. Shoot me an email, and I will wait.

Lyrics of the song Broken Vow by Lara Fabian

(http://www.sing365.com/music/lyric.nsf/Broken-Vow-lyrics-Lara-Fabian/3B7C19A3813A43AE482569610026B5A4)

Tell me her name
I want to know
The way she looks
And where you go
I need to see her face
I need to understand
Why you and I came to an end

Tell me again
I want to hear
Who broke my faith in all these years
Who lays with you at night
When I'm here all alone
Remembering when I was your own

[Chorus:]

I'll let you go
I'll let you fly
Why do I keep asking why
I'll let you go
Now that I found
A way to keep somehow
More than a broken vow

Tell me the words I never said
Show me the tears you never shed
Give me the touch
That one you promised to be mine
Or has it vanished for all time

[Chorus]
I close my eyes
And dream of you and I
And then I realize
There's more to life than only bitterness and lies
I close my eyes
I'd give away my soul
To hold you once again
And never let this promise end
[Chorus]

Commissioner of Customs vs Milwaukee Industries
GRN- 135253 December 9, 2004
Sandoval-Gutierrez, J.:

Facts:
Milwaukee Industries is engaged in the importation of steel billets and manufactures of them into plates, sheets, pipers, rods etc. for local market of Feb 1, 1994, the steel billets arrived a representative of customs broker for Milwaukee presented to customs inspector a shipside permute and it took 6 days to discharge the cargo. The cargo was transported to the warehouse of respondent but “under guard” until a valid delivery permit was presented. Custom Intelligence and Investigation Division questioned the shipment for being transformed without import entry or payment of duties and taxes. Respondent settled the account while Special Assistant to petitioner was instructed to accept payment and facilitate release of the shipment. North understanding the acceptance and respondent’s payment district collection proceed with the seizure and forfeiture proceedings. Commissioner of Customs affirmed the district collector’s decision. CTA reversed.

Issue:
Whether or not the shipment was released to respondent and that respondent failed to comply with customs requirements to justify seizure and for failure of shipment.

Ruling:
CTA found and held that at the time of the transfer to Milwaukee’s factory, the same was not released but merely transformed or discharged under continuous customs guarding. Since the shipment was merely transfer under the custody of the BOC for all legal intents and purposes.
Section 1202 of TCC provides “Importation is deemed terminated upon payment of the duties, taxes and other charges due upon the articles…and the legal permit for withdrawal shall have been granted.
The seizure proceeding must fail.





R.V Marzan Freight vs. CA/ Shiela’s Manufacturing
GRN 128064

Facts:
Philfire issued insurance policy to R.V Marzan, owner of a customs bonded warehouse. Shiela’s manufacturing engaged in the garment business, the consignee of raw materials from Taiwan. The BOC treated the materials as subject to ordinary import taxes and were not immediate released to respondent. The consignee failed to file the requisite import entry and to claim the cargo.BOC authorized petitioners for stripping and safekeeping after 5 months, notice of abandonment giving respondents 15 days from notice to file entry the file cargoes without prejudice to right of the consignee to redeem articles cargoes would redeemed abandoned and be sold at public auction. After a month the declaration of abandonment has become final and executory but before inventory and sale public auction of goods the warehouse was burned. Philfire paid 12,000.00 for the warehouse. After the Lapse of more than 2 years from the arrival of the cargo, the private respondent filed a complaint for damaged before RTC. Petitioner arrived that there is no private of Contract between them since the cargo was received from BOC and that respondent failed to claim the cargo, pay taxes thus not entitled to insurance proceeds.

Issue:
Whether or not the trial court had jurisdiction to review and declare ineffective the declaration of the BOC in abandonment proceedings and that the government ipso facto became the owner thereof.

Ruling:
The declaration that the cargo was abandoned for the failure to file the import entry was ineffective because notice of proceedings of abandonment was not given to the consignee. Evidently, the resolution of this issue is within the exclusive competence of the District Collector of Customs, the Commissioner of Customs and within the appellate jurisdiction of CTA.
The rule has RTC has no review powers over such proceedings is anchored upon the policy of placing un necessary hindrance on the government drive not only to prevent smuggling and other frauds upon customs, but more importantly, to render effective and efficient the collection of import and export duties due the State, which enables the government to carry out the functions it has been instituted to the perform. The trial court should have dismissed the complaint without prejudice to the right of the private respondent to ventilate the issue before the Commissioner of the Customs and/or CTA.



Terminal Facilities TEFASCO/ Vs. PPA
GRN 135826 February 27, 2002
De Leon, Jr. &:

Facts:
Tefasco proposed to construct as specialized terminal complex with part facilities and a provision for sport services in Davao City. On May 7, 1976, PPA accepted the projects TOCs and was authorized to start work. Tefasco contracted dollar lessons concern from private commercial institution abroad to construct its specialized facilities and long after the ground breaking, PPA passed a resolution which imposed a construction; PPA issued another permit the provision of which states that 10% of arrastre and stevedoring gross income and 100% wharf age and berthing charges be given as government share it had paid and for damage as a result of alleged illegal exaction from its clients of 100% berthing and wharf age fees. RTC ruled for Tefasco.

Issue:
Whether or not the collection of 100% wharf age fees and berthing charge are valid.

Ruling:
The authorization for a Tefasco to construct a port was truly a binding construct between the parties. It was a 2-way advantage for both parties which were the consideration for the contract. The right- privilege dechotomy came to an end when courts realized that individuals should not be subjected to the unfettered whims of government officials to withhold privileges previously given them.
In as much as the part is privately owned and maintained, we rule that applicable rate for imported or exported articles loaded or unloaded thereat is not more than 100% but only 50%.
As regards berthing charges, the Court’s opinion is that only vessels berthing at the national ports arte liable for berthing fees. The Berthing fees imposed upon vessels berthing are national ports are applied by the national government for the maintenance ports. The national ports does not maintain municipal ports which are solely maintain by private entities or municipalities. Thus, PPA erred in collecting berthing fees.




Nestle Philippines, Inc. vs. CA
GRN 134114 July 6, 2001
De Leon, Jr. &:

Facts:
CTA Dismissed petitioners motion to grant refund on allegedly overpaid impost duties, on its various importations of milk and milk products in the amount of 5M. Petitioners were assessed customs duties and advance sales taxes by Collector of Customs for each separate importations on the basis of the published Home Consumption Value. Petitioners paid the same but under protests. On October 1986, petitioner finally failed a claim for refund of before BIR and the following day, filed the petition for review with CTA which ordered BIR to refund P 4,489 representing the overpaid advance and Sales Taxes. The refund for alleged overpaid customs duties amounting to P 5.008M were left with the collector of customs undecided after almost 6 years. On Aug 22, 1990, petition filed a petition for review with CTA dismissed for what of jurisdiction. Case was filed with CA on certiorari (Rule 45) but dismissed for CTA jurisdiction is not concurrent with the appellate jurisdiction of Commissioner since there was no decision yet from Collector from Customs.

Issue:
Whether or not petitioner is entitled for alleged overpayment of customs duties on importations thus be remanded to CTA for further review.

Ruling:
We find that the recommended remand of the case to CTA is warranted. For the proper verification and determination of the factual basis and merits of this petition and in order that the ends of substantial justice and fair play my be sub served. Tariff and Customs Code provides that in all claims for refund of customs duties are paid and upon receipts of such claims is mandated to verify the same by the record of his office. In such claim is found correct and in accordance with law, the collector shall certify the same to the commissioner with his recommendation together with all the necessary papers and documents.
Solutio indebt it’s misplaced because there is no factual showing that the collection was more than what is required of the petitioner when it made the importations. There is no factual finding yet that petitioner is indeed entitled to its claim of overpayment and if how much is he entitled.



CIR vs. Wyeth Suaco Lab
GRN-76281 September 30, 1991

Facts:
An investigation and examination of the books of accounts of Wyeth disclosed that Wyeth was paying royalties to Wyeth International and have also declared cash dividends on September 27, 1973 and these were paid on October 3, 1973. It allegedly failed to remit withholding tax at source and accrued royalties resulting to tax deficiency. Assessment notice were received on December1974 whereas letters/reply were sent on Feb 1975 protesting assessment and requesting their cancellation or withdrawal. On December 10, 1979 petitioner rendered a decision reducing the assessment of withholding tax at source. There after, petitioner issued a warrant of distrait of personal; property and warrant of levy real property. CTA decided in favor of respondent ratiocinating that an assessment of any internal revenue tax within the 5 years period of limitation may be collected by distrait of personal property and warrant of levy of real property. CTA decided in favor of respondent ratiocinating that an assessment of any internal revenue tax within the 5 years period of limitation may be collected by distained or levy by a proceeding in count but only if begun within 5 years after the assessment of the tax.

Issue:
Whether or not the right to collect deficiency tax at source and sales tax liabilities from private respondent is barred by prescription.

Ruling:
Settled is a rule that the prescription period provided by law to make collection by distrait or levy by proceeding in court is interrupted once a tax payers requests of reinvestigation or reconsideration of assessment when Wyeth, through SGV and Co protests the assessment and sought its reconsideration on Feb 1975, the prescription period was interrupted. This period started to run again when the BIR served the final assessment of Wyeth on Jan 2, 1980. Since the warrant of distrait and levy were served on Wyeth on March 12, 1980 then only about for months of the five year prescriptive period was used.

I want to share with you an entry by one of my friends. Read on...

Each and every one of us is created to be different from each other. We have different ideas, philosophies in life, hobbies likes and dislikes. For example is me, I have my own kind of lifestyle, ideals and so on. And I have lot of things that I wanted to pursue in life. Like music, I love music. That is why I have this favorite song which I always wanted to hear every time I wake up. I even use it as an alarm tone of my phone. This song is entitled “God Gave Me You” by Bryan White. Every time I hear this song it will always make me pause and reflect. It is so meaningful that it takes away all the troubles I had in mind and always give peace in my heart.

Lyrics of the song from http://www.sing365.com/music/lyric.nsf/God-Gave-Me-You-lyrics-Bryan-White/CF014EB82E30231D48256910001E41E8

God gave me you

By: Bryan White

or all the times I felt cheated, I complained
You know how I love to complain
For all the wrongs I repeated, though I was to blame
I still cursed that rain
I didn't have a prayer, didn't have a clue
Then out of the blue

God gave me you to show me what's real
There's more to life than just how I feel
And all that I'm worth is right before my eyes
And all that I live for though I didn't know why
Now I do, 'cause God gave me you

For all the times I wore my self pity like a favorite shirt
All wrapped up in that hurt
For every glass I saw, I saw half empty
Now it overflows like a river through my soul
From every doubt I had, I'm finally free
I truly believe

God gave me you to show me what's real
There's more to life than just how I feel
And all that I'm worth is right before my eyes
And all that I live for though I didn't know why
Now I do, 'cause God gave me you

In your arms I'm someone new
With ever tender kiss from you
Oh must confess
I've been blessed

God gave me you to show me what's real
There's more to life than just how I feel
And all that I'm worth is right before my eyes
And all that I live for though I didn't know why (didn't know why)
Now I do (I finally do), 'cause God gave me you (God gave me You)

God gave me you

Mactan Cebu (MCIAA) vs. Marcos

GR 120082 September 11, 1996 261 SCRA 667

Davide Jr., .: (CJ)

FACTS:

Mactan Cebu International Airport Authority (MCIAA) was created to “principally undertake to economical, efficient and effective control, management and supervision of the Mactan International Airport… and such other airports as may be established in the province of Cebu…” Section 14 of its charter excempts the Authority from payment of realty taxes but in 1994, the City Treasurer demanded payment for realty taxes on several parcels of land belonging to the other. MCIAA filed a petition in RTC contending that, by nature of its powers and functions, it has the same footing of an agency or instrumentality of the national government. The RTC dismissed the petition based on Section 193 & 234 of the local Government Code or R.A. 7160. Thus this petition.

ISSUE:

Whether or not the MCIAA is excempted from realty taxes?

RULING:

With the repealing clause of RA 7160 the tax exemption provided. “All general and special in the charter of the MCIAA has been expressly repeated. It state laws, acts, City Charters, decrees, executive orders, proclamations and administrative regulations, or part of parts thereof which are inconsistent with any of the provisions of the Code are hereby repeated or modified accordingly.” Therefore the SC affirmed the decision and order of the RTC and herein petitioner has to pay the assessed realty tax of its properties effective January 1, 1992 up to the present.

Jesus Estanislao vs. Amado Costales

GRN 96516 May 8, 1991 / 196 SCRA 853

Gancayco, J.:

FACTS:

The Sanggunian Panglungsod passed ordinance No 44 of Zamboanga City. The same was sent to the Minister of Finance where it was found out to contravenes Section 19 of the local Tax Code. The authority of the city is limited to the imposition of a percentage tax on the gross sales or receipts of said production. The tax being imposed in the ordinance is based on the output or production and not on the gross sales or receipts as authorized under the local tax code. The city Mayor of Zamboanga questioned such decision of the Finance Minister and the lower court ruled in favor of the former by reason of prescription. The ordinance imposed P0.01 per liter of softdrinks produced, manufactured and or bottled within the territorial jurisdiction of the City of Zamboanga.

ISSUE:

Whether or not Ordinance No. 44 contravenes the Local Tax Code of 1974.

RULING:

The court ruled that the tax ordinances issued by the local autonomy is governed by the Local Tax Code of 1974 as it was stated in Section 64 (a) thereof all existing tax ordinances of provinces, cities, municipalities and barrios shall be deemed ipso facto nullified on June 30, 1974. The court also clarified that the 120 days that lapsed before the Minister of Finance acted on the ordinance did not render the action inoperative due to prescription. Even if the Secretary of Finance failed to review or act on the ordinance within 120 days, it does not follow as a legal consequence thereof that an otherwise invalid ordinance is thereby validated. It does not also mean that the Secretary can no longer act by suspending and/or revoking an invalid ordinance even after the lapse of 120 day period.

Phil Petroleum Corporation vs. Mun of Pililia, Rizal

GR 90776 June 3, 1991 / 198 SCRA 82

Paras, J.:

Facts:

Petitioner, Philippine Petroleum Corporation (PPC) owns and maintains an oil refinery conducting business within the municipality of Pililia, Rizal. P.D. 231 or the local tax code of 1973 provide for the Municipality of impose taxes on business any article of commerce. Thereafter, Provincial Circular 26-73 was issued directing all provincial, City and municipal treasurers to refrain from collecting any local imposed in petroleum products. In 1974, P.D. 426 amended certain provisions of P.D. 231. The municipality of Pililia, through Municipal Tax ordinance 1, S-1974, imposed tax on business. In the RTC, respondent received a favorable decision, directing herein petitioner to pay the tax and fees impose unto it. Petitioner contended that Provincial Arcular 26-73 suspended the effectively of local tax ordinances of the local tax code.

ISSUE:

Whether or not Provincial Circular No. 26-73 supersedes the provisions of P.D. 231 as amended by P.D. 426?

RULING:

The court ruled in the negative, stating that “in case of discrepancy between the basic law and on implementing rule or regulation, the former prevails.” P.D. 426, amending the local tax code repealed P.C. No. 26-73 and 26-A73 where section 19 of which stated “the municipality may impose taxes on business… manufacturers importers or producers of any article of commerce of whatever kind or nature…”

Thus, the order of the lower court was affirmed by SC with certain modification. In the case at bar, the provisions of the local tax code of 1974 supersedes P.C. 26-73, likewise upholding the constitutional right granted to local autonomy to imposed taxes.

Jardine Davies Insurance vs. Aliposo

GRN 118900 February 27, 2003

Callejo, Sr. J.:

FACTS:

Makati enacted Municipal Ordinance 92-072 which provides for the schedule of real estate, business and franchise taxes in Makati. PRCI appealed the ordinance with the DOJ assailing invalidity due to lack of public hearing, in violation of RA 7160. DOJ declared it null and void while pending appeal to SC, Makati continued to implement the ordinance. Petitioner Jardine paid its deficiency taxes without any protest. In 1995, Jardine requested for tax credit or refund which Makati denied reasoning that until nullified by final judgment of competent court, the ordinance remained in full force & effect. RTC dismissed petitioner’s case ruling that plaintiff’s cause of action has prescribed. Petition for review under Rule 45 was filed.

ISSUE:

Whether or not a protest must first be filed before an action for refund/credit in instituted.

RULING:

As a general precept, a taxpayer may file a complaint assailing the validity of the ordinance and praying for a refund of its overpayments without first filing a protest to the payment of taxes due the ordinance. However, petitioner was prescribed from filing its complaint with RTC for the reason that petitioner failed to appeal to Sec. of the Justice within 30 days from affectivity of ordinance as provided by Sec 187, RA 7160.

Failure of taxpayer to interpose the requisite appeal to DOJ is fatal to its complaint for a refund. Any delay in implementing tax measures would be to the detriment of the public. It is for this reason that protests over tax ordinances are required to be done within certain time frames. Moreover, petitioner even paid without any protest the amounts of taxes assessed by respondents as provided for in the ordinance. The complaint was a mere afterthought.

Lim vs CA/PP

GRN L- 48134-37 October 18, 1990

Fernan, J.:

Facts:

Petitioner Spouses (Lim) were engaged in a Lendership business. A Raid was made on their promises and seized were business and accounting records which served as bases for an investigation by BIR. Findings reveal that income tax filed for 1958/1959 were false or fraudulent. BIR referred the case to Manila for investigation and prosecution. RTC found spouses guilty but Emilio Lim died and CA resolved that counsel petitioners should inform the court as to who are the heirs of Emilio.

Issue:

Whether or not the civil obligation arising from the crime charged was extinguished by his death.

Ruling:

Indubitably, petitioners had filed false and fraudulent income tax returns for the years 1958 and 1959 by non-disclosure of sales in the aggregate amount of P 2,197,742.92 thereby depriving the government in the amount of P 1,237,190.55 representing deficiency income taxes inclusive of interest, surcharges and compromise penalty for the late payment. Considering it occurred in the 50’s the defraudation was on a massive scale. It is clear that criminal conviction for a violation of any penal provision in the tax code does not mount at the same time to a decision for a payment of the unpaid taxes in as much as there is no specific provision in the tax code prior to its amendment. The trial court did not order the payment of the unpaid taxes as a part of the sentence. The supervening death of Emilio has extinguished his liability with regard to the pecuniary penalty of fine imposed on the deceased.

The crime of filling false return can be considered discovered only after the manner of commission and the nature and extent of the fraud have been definitely ascertained. It was only Oct. 10, 1967 when the BIR rendered its decision holding that there was no ground for the reversal of the assessment and therefore required the petitioners to pay deficiency taxes that the tax infractions were discovered.

Yamane vs BA Lepanito Condominium Corp.

GRN: 154993, October 25,2005

Tinga, J.:

Facts;

The Condominium is authorized to collect regular assessments from its members for operating expenses, capital, and expenditures on the common areas and other special assessment as provided for in its CBL on Dec. 15, 1998, the corporation sought for the legal basis of said assessment Yamane responded that the corporation is in engaged in the business and that the collection of dues has for its ends a better marketable prices for occupants who would in the future sell their units. RTC concluded that the activities of the corporation fall squarely under the definition of business under Sec 13 of LGC, and thus subject to local business taxation.

Issue:

Whether or not a Local government unit can impel a condominium corporation to pay business taxes.

Ruling:

The power of Local Government units to impose taxes within its territorial jurisdiction derives from the constitution. Section 143 of LGC specifically enumerates several types of business on which municipalities and cities may impose taxes but none refers to case at bar. In fact, nowhere in is there any citation by city treasurer as to the legal authority upon which the collection of business tax from corporation was based.

To subject a corporation to a business taxes, its activities must fall within the definition of business provided in local government Code. We can Elicit from condominium act that condominium corporation is precluded by statistic from engaging in corporate activities other than the holding of common areas, the administration of the condominium project and other acts necessary, incidental or convenient to the accomplishment of such purposes. There is no contemplation of business and the assessment appears to be solely based on corporation’s collection of assessment from unit owners which was used to defray expense of the condominium.

Obillos et al vs. CIR/CA
GRN – L68118 October 29, 1985
Aquino, J.:

FACTS:
Petitioners sold the lots they inherited from their father and derived a total profit of P33,584 for each of them. They treated the profit as capital gain and paid an income tax thereof. The CIR required petitioners to pay corporate income tax on their shares, .20% tax fraud surcharge and 42% accumulated interest. Deficiency tax was assessed on the theory that they had formed an unregistered partnership or joint venture.

ISSUE:
Whether or not partnership was formed by the siblings thus be assessed of the corporate tax.

RULING:
Petitioners were co-owners and to consider them partners would obliterate the distinction between co-ownership and partnership. The petitioners were not engaged in any joint venture by reason of that isolated transaction.

Art 1769… the sharing of gross returns does not of itself establish a partnership, whether or not the persons sharing them have a joint or common right or interest in any property from which the returns are derived. There must be an unmistakable intention to form partnership or joint venture.

Mobil Philippines vs. City Treasure of Makati
GRN 154092 July 14, 2005
Quisumbing, J.:

FACTS:
Petitioner’s office was located in Makati City when it filed an application with the City Treasurer for retirement of business within Makati as it moved its business to Pasig City, on September 1998. After evaluation, petitioner was assessed business tax in the amount of P1,898,106.96. Petitioner paid the tax under protest and in 1999, claimed a refund therefrom. RTC denied the petition for refund ratiocinating that… the payments made by mobil in 1998 are payments for business tax for 1997 which occurred in January of 1998.

ISSUE:
Whether or not the business taxes paid in 1998, business taxes for 1997.

RULING:
Business taxes imposed in the exercise of police power for regulatory purposes are paid for the privilege of carrying on a business in the year the tax was paid. It is paid at the beginning of the year as a fee to allow the business to operate for the rest of the year. The business taxes paid n the year 1998 is for the privilege of engaging in business for the same year. Thus we find that the respondent erroneously treated the assessment and collection of business tax as if it were income tax, by rendering an additional assessment of P1,331,638.84 for the revenue generated for the year 1998.

PFDA vs. CA/Navotas

GRN 150301 October 2, 2007

Azcuña, J.:

FACTS:

Respondent Navotas assessed real estate taxes due from petitioner PFDA for the period 1981-1990 on properties under its jurisdiction, management and operation located inside the Navotas Fishing Port Complex. The assessed taxes remained unpaid, the complex was scheduled for a public auction. Despite DOF’s order to make an ocular inspection of said complex, respondent municipality proceeded with the sale. RTC issued writ of preliminary injunction enjoining Navotas from proceeding with the auction. RTC subsequently dismissed the case, ratiocinating that: “assailing the validity of the tax assessments of the NFPC propertiers is not the proper recourse of the plaintiff but to pay first the assessments under protest and then raise the same on appeal to the LBAA, then to CBAA then ultimately to CTA. CA affirmed the ruling.”

ISSUE:

Whether or not petitioner is liable to pay the assessed tax.

RULING:

“Common limitations to the taxing power of LGU’s are those… taxes, fees, charges of any kind on the national government, its agencies and instrumentalities, and local government units.” This does not apply when the beneficial use of the government property has been granted to a taxable person. Thus, as a rule, PFDA, being an instrumentality of the national government, is exempt from real property tax but the exemption does not extend to the portions of the NFPC that were leased to taxable or private persons and entities for their beneficial use. NFPC cannot be sold at public auction in satisfaction of the tax delinquency assessments made by the municipality on the entire complex. The land on which the NFPC property sits is a reclaimed land, which belongs to the state.

FELS ENERGY vs. BATANGAS

GRN 168557 February 16, 2007

Callejo, J.:

FACTS:

Power energy leased its power barge to NPC for a period of 5 years. In the agreement, NPC was made to shoulder any tax expenses related to the power barge then Polar assigned its rights to FELS. Batangas assessed the property and FELS referred the matter to NPC pursuant to the Agreement. NPC sought reconsideration to Provincial Assessor but was denied. LBAA affirmed provincial assessor while CBAA found the power barges exempt from real property tax, consequently reversed its own ruling. FELS & NPC separately filed a petition for review before CA.

ISSUE:

Whether or not local assessor has the jurisdiction to entertain any request for a review or readjustment.

RULING:

The appropriate forum where the aggrieved party may bring his appeal is the LBAA as provided by law. It follows that the 60-day period for making the appeal to LBAA runs without interruption.

If the taxpayer fails to appeal in due course, the right of the local government to collect the taxes due with respect to the taxpayer’s property becomes absolute upon the expiration of the period to appeal. Also, failure of taxpayer to question the assessment in the LBAA renders the assessment of the local assessor final, executory and demandable, thus precluding the taxpayer from questioning the correctness of the assessment, or from invoking any defense that would re open the question of its liability on the merits.

Dgigitel vs. Pangasinan

GRN 152 534 February 23, 2007

Chico-Nazario, J:

FACTS:

Pangasinan filed a petition for Mandamus, Collection of Sum of Money and Damages against Digitel on March 1, 2000. LGC withdrew any exemption from payment of a tax on businesses enjoying a franchise and authorized LGU’s to impose a franchise tax, on business enjoying a franchise within its territorial jurisdiction. (Sec 137, RA 7160) under Provincial Ordinance, Digitel was granted a provincial franchise but was required to pay franchise & real property taxes. Pangasinan likewise enacted “The Real Property Tax Ordinance of 1992” and technically expanded the application of franchise to include machineries and other improvements, thereinafter exempted to Digitel. Since 92, 93 & 94, Digitel allegedly had a franchise tax deficiency which hasn’t been paid since the start of its operation. In 1995, congress passed RA 7925, “The public Telecoms Policy Act Section 23 provided: for the application to any previously granted telecoms franchises of any advantage granted under existing franchise.”

ISSUE:

Whether or not Digitel is entitled to the exemption from the payment of provincial franchise tax in view of RA 7925.

RULING:

Prior to the enactment and effectivity of its legislative franchise, with only a provincial franchise to speak of, Digitel did not enjoy any exemption from payment of franchise and real property taxes. The word exemption as used in RA 7925 pertains to an exemption from regulatory or reporting requirements of the DOTC or the NTC and not to the grantee’s tax liability. In many resolved cases, the Court ruled that

“when exemption is claimed, it must be shown indubitably to exist… a well-founded doubt is fatal to the claim. It is only when the terms of the concession are too explicit to admit fairly of any other, construction that the preposition can be supported.”

On whether Congerss may lift the taxing power of LGU, Court said: “the grant of taxing powers to LGU’s under LGC does not affect the power of Congress to grant exemptions to certain persons, pursuant to a declared national policy. The legal effect of that in interpreting statutory provisions on municipal corporations. Congress exempted real property tax on those properties actually, exclusively and direcdtly used by DIGITEL in the pursuit of its franchise.”

Reyes vs. CA

GRN 118233 December 10, 1999

Quisumbing; J.: en banc

FACTS:

San Juan, MM implemented several tax ordinances and on May 1993, petitioners filed an appeal to DOJ assailing the constitutionality of these ordinances because they were promulgated without a public hearing. Secretary dismissed the case for having been filed out of time, under Sec. 187, RA 7160. CA affirmed.

ISSUE:

Whether or not the constitutional validity of Sec 187 of LGC to could be raised for the first time on appeal.

RULING:

Petitioners claim that the alleged failure of San Juan to conduct public hearing, ordinances were inoperative and that no prescriptive 30-day period to question the validity of the ordinance could toll to bar appeal to DOJ. The provisions of Sec 187, RA 7160 are set to prevent delays as well as enhance the orderly and speedy discharge of judicial functions. In the instant case, it is our view that failure of petitioners to appeal to the Secretary of Justice within 30 days as required by RA 7160 is fatal to their case. On the issue of its validity, the constitutionality of an act of Congress will not be passed upon by the Court unless at the first opportunity, that question is properly raised and presented in an appropriate case, and is necessary to determination of the case, particularly where the issue of constitutionality is very lis mota presented.