Liability of Stevedoring Corporation Operating Broadcasting Station

August 7, 1970 BIR RULING NO. 040-70 Stevedoring corporation operating broadcasting station, liability . This refers to the letter dated February 16, 1970 of Mr. Daniel A. Areamo, Chief Accountant of Mico Stevedoring Corporation of Mico, Davao Del Norte, requesting opinion on the following query: Mr. A operates a Radio Station under a Management Contract arrangement with Mr. B, the franchise holder or grantee co. "Now, under the provisions of Sec. 182 (c) of the Omnibus Tax Law, franchise grantees are required to pay an annual fixed tax of P500.00. "If, under the facts given, Mr. B has several stations under similar arrangements (Management contract), will said Mr. B be required to pay P500.00 only as fixed tax in view of his franchise and irrespective of the number of stations under the same (franchise), or should be made to pay the same amount (P500.00) for each and every station? casia In reply, I have the honor to inform you that under Section 178 of the Tax Code, the tax on business is payable for every separate or distinct establishment or place where business subject to the tax is conducted. This provision contemplates a case where a person who, although engaged in only one particular class of business nevertheless, maintains two or more separate and distinct establishments for the operation of his business, in which case the fixed tax is imposed upon each of the separate and distinct establishment where the business subject to the tax is conducted. (BIR Ruling No. 70-019, April 13, 1970). Thus, every radio station being operated by Mr. B is a separate or distinct establishment or place where his business as a franchise grantee is conducted. Therefore, every radio station is subject to the annual fixed tax of P500.00 prescribed by Section 182 (A) (3) (gg) of the Tax Code, as amended by Republic Act No. 6110.