DOJ Opinion No. 033, s. 1995

DOJ OPINION NO. 033 , s. 1995 April 5, 1995 Assistant Secretary Manual F. Bruan Land Transportation Office East Avenue, Question City Sir : This refers to your request for legal opinion on whether the Philippine Airlines (PAL) has automatically ceased to be exempted from payment of motor vehicle registration fees or taxes under Section 13 of Presidential Decree No. 1590 upon acquisition by a private individual of its controlling stock or upon its conversion from a government-owned or controlled corporation to a private one. The request, it appears, was precipitated by PAL's letter dated February 27, 1995 requesting the Land Transportation Office (LTO) to immediately implement the decision (of the Supreme Court in PAL vs. Edu, 164 SCRA 320 [1988]) wherein PAL was declared exempt from payment of any tax, fee, or other charge on the registration and licensing of its motor vehicles as well as the orders of the Regional Trial Court of Question City dated January 12, 1994 and June 1, 1994, respectively, based on the said Supreme Court decision, directing LTO to "refrain from collecting any further registration fees from PAL's motor vehicles." We are constrained, much to our regret, to decline rendition of opinion on the present query for the reason that any opinion that we may render thereon would be tantamount to a review of the subject decisions. This Department has no revisory power over the courts. (Sec. of Justice Opns. No. 19, s. 1981; No. 49, s. 1992 and No. 284, 1982). LLjur In any case, we invite your attention to pertinent provisions of Sections 13 and 24, respectively, of P.D. No. 1590 which we find relevant to your query, to wit: "SEC. 13. In consideration of the franchise and rights hereby granted, the grantee shall pay to the Philippine Government during the life of this franchise whichever of subsections (a) and (b) hereunder will result in a lower tax: (a) The basic corporate income tax based on the grantee's annual net taxable income computed in accordance with the provisions of the National Internal Revenue Code; or (b) A franchise tax of two per cent (2%) of the gross revenues derived by the grantee from all sources without distinction as to transport operations; provided, that with respect to international airtransport service, only the gross passenger, mail, and freight revenues from its outgoing flights shall be subject to this tax. The tax paid by the grantee under either of the above alternatives shall be in lieu of all other taxes, duties, royalties, registration, license, and other fees and charges of any kind, nature, or description, imposed, levied, established, assessed, or collected by any municipal, city, provincial, or national authority or government agency, now or in the future, including but not limited to the following: xxx xxx xxx (5) All taxes, fees, and other charges on the registration, licensing, requisition, and transfer of aircraft, equipment, motor vehicles, and all other personal and real property of the grantee;" xxx xxx xxx "SEC. 24. This franchise, as amended, or any section or provision hereof may only be modified, amended, or repealed expressly by a special law or decree that shall specifically modify, amend, or repeal this franchise or any section or provision thereof." Very truly yours, (SGD.) DEMETRIO G. DEMETRIA Acting Secretary