Bureau of Local Government Finance Opinion

July 16, 1998 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully referred to the City Treasurer of Manila the attached letter dated July 10, 1998 of Mr. Rolando Paes, Finance Manager, OVRoy Construction, Inc. (OVRCI), requesting opinion on whether or not the City of Manila can validly assess and collect the taxes levied under Section 21 in addition to those under Section 18 of Ordinance No. 7794. It appears that OVRCI, as a General Building Contractor, more specifically as a Specialty Contractor dealing on package air-conditioning paid its taxes under Section 21 of the abovesaid Ordinance. However, OVRCI claims that such imposition could be a clear case of double taxation in view of the fact that said corporation has been religiously paying its taxes under Section 18 (Tax on Contractor) of the same ordinance. In this connection, the Department of Finance, on previous similar cases has expressed the view that if a business is already taxed under sub-sections (a) to (g) of Section 143 of the LGC, such business should no longer be taxed under sub-section (h), for reason that such imposition will constitute double taxation as the same kind of tax is being imposed twice on the same business. The foregoing views are in reiteration of the previous action on a similar query addressed to Mr. Alfredo T. Libunao, Office Manager of R.R. Baltazar and Co., Inc., copy enclosed. Accordingly, this Bureau expresses the view that the imposition of local taxes under Sections 21 and 18 of the subject ordinance is tantamount to double taxation. In view of the foregoing, that Office is hereby instructed to cease and desist from collecting the business taxes of OVRCI under Section 21 of the ordinance. ISHaTA Finally, the suggestion embodied under the 1st indorsement dated March 12, 1997, copy also enclosed, that effort be exerted by that Office to advise the city officials concerned about the mounting complaints of the taxpayer of the city against the imposition in question which should not be enforced/collected by that Office, is hereby reiterated. (SGD.) ANGELINA M. MAGSINO (Deputy Executive Director) Officer-In-Charge