Bureau of Local Government Finance Opinion

June 20, 1997 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully referred to the City Treasurer of Manila, the attached letter dated June 6, 1997 of Ms. Carolina Zenaida Ang, Assistant Accounting Manager of Isetann Department Store, Inc. (IDSI) requesting opinion on whether or not that city can validly assess and collect the taxes levied on the sale of goods and services pursuant to Section 21(a) of Ordinance No. 7794, as amended, of that city, in addition to those under the provisions of 15, 16 and 17 of the same ordinance. It appears that the businesses of IDSI, as wholesaler and retailer, (essential and non-essential commodities) in addition to Mayor's permit and other regulatory fees, are taxed under Sections 15, 16 and 17, of Ordinance No. 7794, as amended of that city. However, said company is still being taxed under Section 21 of the same ordinance. IDSI furnished this Office xerox copies of Official Receipts for the years 1996 and 1997 representing payments under Section 21 and Section 15, 16 and 17 based on the same gross receipts and for the benefit of the same government entity. 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." SEHTAC 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, and considering the representations made by IDSI, this Bureau expresses the view that the imposition of local taxes under Section 21, and Sections 15, 16 and 17 of the subject Ordinance is tantamount to double taxation. Hence, this Bureau has written the Assistant Accounting Manager of the company to confer with that Office for the purpose of securing the refund or tax credits of the erroneous payments made under Section 21 of said ordinance. Finally, the suggestion embodied under the 1st Indorsement dated March 12, 1997, that effort be exerted by that Office to advise the city officials concerned about the mounting complaints of the taxpayers of the city against the imposition in question which should not be enforced/collected by that Office, is hereby reiterated. (SGD.) LORINDA M. CARLOS Executive Director