BIR Ruling [UN-015-96]

January 10, 1996 BIR RULING [UN-015-96] Eastern Telecommunications Philippines, Inc. Telecom Plaza, 316 Sen. Gil J. Puyat Avenue Salcedo Village, Makati City Attention: Mr . Virgilio R . Garcia Asst . Vice President Administrative & Legal Gentlemen : This refers to your letter dated November 20, 1995 requesting a ruling as to whether or not you are liable to the payment of the local franchise tax, documentary stamp tax and customs duties assessed and levied against you by Local Government Units citing the Local Government Code as their basis. It is represented that you are a grantee of a legislative franchise under Republic Act No. 80 as amended; that under Section 8 of Republic Act No. 80, you shall pay to the Republic of the Philippines during the life of the franchise, a tax of five percent (5%) of your gross earnings derived from your operation under the franchise which originate in the Philippines and such tax shall be in lieu of all taxes of any kind, nature or description, levied, established or collected by any municipal, provincial or Republic authority except that you are liable to pay tax on your real property in conformity with existing law; and that you have paid local franchise tax under protest to the city government of Cebu. In reply thereto, please be informed that pursuant to Section 195 of the Local Government Code, within sixty (60) days from the receipt of the notice of assessment of local taxes, fees and charges, the taxpayer may file a written protest with the local treasurer contesting the assessment; otherwise, the assessment shall become final and executory. The local treasurer shall decide the protest within sixty (60) days from the time of its filing. If the local treasurer finds the protest to be wholly or partly meritorious, he shall issue a notice cancelling wholly or partially the assessment. However, if the local treasurer finds the assessment to be wholly or partly correct, he shall deny the protest wholly or partly with notice to the taxpayer. The taxpayer shall have thirty (30) days from the receipt of the denial of the protest or from the lapse of the sixty (60) day period prescribed herein within which to appeal with the court of competent jurisdiction otherwise the assessment becomes conclusive and unappealable. Such being the case, your protest on the imposition of local taxes against you by Local Government units on you should be addressed to the Local Treasurer who shall decide your protest within sixty (60) days from the time of its filing. If your protest is denied, you have thirty (30) days within which to appeal said denial with the court of competent jurisdiction; otherwise, the assessment becomes conclusive and unappealable. cd Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)