BIR Ruling

May 20, 1969 The Honorable Auditor General Manila S i r : This refers to the rate of franchise tax that should be paid by the RCA Communications, Inc., which has been the subject of communications from you. The impression seem to be that upon the enactment of Republic Act No. 4617 on June 19, 1965, RCA Communications, Inc. had been indubitably established to be operating under the authority of Act 3178. It has not as yet availed of the privileges provided for by Republic Act No. 4617 as in fact it had not as yet even secured the corresponding licenses from the Radio Control Office nor the frequency and wave-lengths that it should use from the Secretary of Public Works and Communications as provided for in said Act. In view of the foregoing, it is the opinion of this Office as it hereby holds that RCA Communications, Inc. is still subject to the franchise tax as provided for by its original franchise, Act 3178, which franchise is still in full force and subsisting until 1974 as provided for therein. cdtech Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue