Interpretation of Section 150 of RA 7160 Regarding Situs of Tax

July 23, 2010 DILG LEGAL OPINION NO. 123-10 Atty. Eduardo G. Castelo Castelo Law Office 4/F RGC Bldg., 219 Apo St. Mandaluyong City Dear Atty. Castelo : This pertains to your letter-query on the subject matter of the interpretation of Section 150 of RA 7160 regarding situs of tax. In reply thereto, please be informed that this Department had already answered a similar query in DILG Opinion No. 77, s. 2004. In said legal opinion, we opined that Section 150 (a) of RA 7160 is rather explicit in stating that taxes due on branch sales shall accrue and be paid to the municipality where such branch or sales outlet is located or in case where there is no such branch or sales outlet in the city or municipality where the sale or transaction is made, the sale shall be duly recorded in the principal office and the taxes due shall accrue and shall be paid to such city or municipality. However, if you think that ordinances approved by the sanggunian suffers from legal infirmity ( i.e., it would run counter to the provisions of RA 7160), it would be advisable for you to seek the aid of our courts by filing therein the appropriate action since this Department is bereft of any authority to declare invalid the subject ordinance already enacted and approved by the sanggunian of a local government unit. CIDaTc We hope we have enlightened you on the matter. Very truly yours, By Authority of the Secretary: (SGD.) ATTY. JESUS B. DOQUE IV Director III Legal Service Department of Interior and Local Government ATTACHMENT DILG Opinion No. 077-04 August 23, 2004