BIR Ruling

January 23, 1969 Mr. Petronilo S. Mallari General Auditor Republic Telephone Co., Inc. P.O. Box 485, Manila S i r : This has reference to your letter dated January 6, 1969 requesting opinion on whether the Republic Telephone Co., Inc. is subject to the payment of real estate and residence tax, Class C and C-1, when its franchise, R. A. No. 3662, Section 7, reads "Sec. 7. The grantee, its successors or assigns, shall be liable to pay the same taxes on the real estate, building, and personal property exclusive of this franchise , as other persons or corporations are now or hereafter may be required by law to pay. In addition, the grantee, its successors or assigns shall pay to the Treasurer of the Philippines each year within ten days after the audit and approval of the accounts as prescribed in Section six of this Act, two per centum of all gross receipts of the telephone or other electrical transmission business transacted under this franchise by the grantee, its successors or assigns, and the percentage shall be in lieu of all other taxes ." (Emphasis supplied) In reply, I have the honor to inform you that in the light of Section 7 of your franchise, your query has to be as it is hereby answered in the affirmative. cd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue