BIR Ruling

August 12, 1969 Mr. Johnny R. Alcasid Jural Electric General Santos City S i r : This refers to your letter dated July 29, 1969 requesting information on the following: cdll "(1) If in the provisions of a legislative franchise it does not specify the collection of a franchise tax or any other tax, what kind of tax should a legislative franchise holder pay the Municipal or National government? "(2) If ever the legislative franchise holder mentioned above is compelled to pay the franchise tax or any other tax to the Municipal or National government, what is the time limit allowed to pay such taxes without penalty? Would it be by monthly, quarterly, semi-annual, or annual basis? "(3) In connection with the diesel fuel and lubricating oils used in the generating units of an electric plant, is there any refundable amount due to an electric plant operator from the Bureau of Internal Revenue? "(4) How much is refundable and what is the proper procedure to get such a refund if there is any from the Bureau of Internal Revenue? In reply, I have the honor to inform you that if the legislative franchise tax to be paid by the grantee, the 5% tax imposed by Section 259 of the Tax Code shall apply. Section 259 of the said Code fixes the rate of the franchise tax to be paid by holders of all existing and future franchises. The above-mentioned franchise is due and payable monthly like percentage taxes. Section 259 of the Tax Code, as amended, provides that taxes, charges and percentages on corporate franchises shall be due and payable as specified in the particular franchise and in case no time limit is specified therein, the provisions of Section 183, as amended by Republic Act No. 2025, provides that percentage taxes for the month are payable within the 20th day of the succeeding month. There is no refundable amount due to an electric plant operator with regard to the specific taxes paid on diesel fuel and lubricating oils used in the generating units of its electric plant. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue