Advantage of a Legislative Franchise Over that of a Municipal Franchise
BIR Ruling No. 541-60 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Dec 14, 1960
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December 14, 1960 BIR RULING NO. 541-60 Messrs. Vergara, Taguiam & Robles Park View Hotel Building Cabanatuan City Gentlemen : In answer to your letter of December 2, 1960, please be informed as follows: The advantage of a legislative franchise over that of a municipal franchise lies in the fact that under the former, exemption from tax may be granted, whereas, in the latter, such exemption cannot be granted. (Act 3636; Act 667, Sec. 6; Guagua Electric, etc. v. Collector, CTA Case No. 616, May 23, 1960). The taxes from which a grantee of a legislative franchise is exempted will have to be determined by the provisions of the charter itself. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue
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