Professional Documents
Culture Documents
-Manila Railroad v. Raferty: shall be in lieu of all taxes of every name and nature. exempts the manila railroad from payment of internal revenue tax for importations of coal and oil -PNR v. CIR: same phrase exempted PNR from payment of the tax on its corporate franchise under sec. 29 of IRC. -Cotabato Light and Power co. v. City of Cotabato: shall be in lieu of all taxes exempted cotabato light from payment of the tax imposed by ordinance no. 7 of the city of cotabato -Carcar Electric & Ice Plant v. CIR: such exemption is part of the inducement for the acceptance of the franchise and the rendition of public service by the grantee. It is a private contract, the imposition of another franchise tax would constitute an impairment of the contract betweent he government and the corporation. -CIR v. Lingayen Gulf Electric Power co.: no other tax other than the franchise tax of 2%... shall be collected exempted said electric company from paying the franchise tax under NIRC. Not all were lucky. Balanga Power plant company. Imus Electric co., Guagua electric company, inc. were subjected to 5% tax on corporate franchise under IRC because Act no 667 of the Philippine Commission and the ordinance granting their respective franchise did not contain in-lieu-of-all-taxes clause. Franchise Tax in the Local Tax code shall be collected from business holding franchise but not from those whose franchise contain the said phrase/proviso. The case cited by the province, Meralco v. Vera is not applicable since the issue in that case was not a franchise tax but a compensating tax on the poles, wires, transformers and insulators which it imported for its use. Petition DENIED. CFI decision AFFIRMED. Justin Benedict A. Moreto