DILG Opinion No.

21 S, 2010
March 03, 2010
MR. ARMANDO M. MERILLENO
President
Cable Lin and !oldin"s Corporation
#210 Dr. $. Santos $%en&e
Para'a(&e Cit)
Dear Mr. Merilleno*
+his has re,erence to )o&r earlier letter re(&estin" o&r le"al opinion and
intercession in the iss&ance o, an electrical per-it in )o&r co-pan).s ,a%or to ho&se
)o&r co-pan).s po/er s&ppl) in connection /ith )o&r cable +0 b&siness.
Per )o&r letter, it appears that )o&r co-pan), Cable Lin !oldin"s Corporation, is
a holder o, a con"ressional ,ranchise &nder 1ep&blic $ct 2#32 passed b) Con"ress on
23 4&l) 2005 to o/n and operate a cable +0 6C$+07 station all o%er the co&ntr). 8o&r
co-pan) /as also "i%en b) the National +eleco--&nications Co--ission 6N+C7 /ith
per-it to operate a cable +0 6C$+07.
On 02 Dece-ber 2002, )o&r co-pan) applied ,or an electrical per-it to ho&se
)o&r co-pan).s po/er s&ppl) /ith the O,,ice o, the 9&ildin" O,,icial o, the Cit) o, Pasi".
Since the said 9&ildin" has not replied to )o&r application ,or a considerable len"th o,
ti-e, )o& represented that )o& /rote a letter to Ma)or 1obert :&sebio on 03 4an&ar)
2010. In a letter dated 1# 4an&ar) 2010, :n"rs. 4essie D. 1a-os and Ma-erto 0.
Mesina, 4r. ,ro- the :lectrical and Mechanical Section, O,,ice o, the Cit) 9&ildin"
O,,icial, re(&ired )o&r co-pan) to s&b-it a cop) o, the San""&nian 1esol&tion, /itho&t
-entionin", ho/e%er, the nat&re thereo,. 8o& ,&rther represented that )o& ased ,or a
clari,ication ,ro- the O,,ice o, the 9&ildin" O,,icial re"ardin" the re(&ired San""&nian
1esol&tion, b&t the sa-e /as rendered ,&tile, d&e to the latter.s non;repl).
It is )o&r position that )o&r co-pan) need not s&b-it the San""&nian 1esol&tion
as re(&ired b) the a,oresaid t/o 627 :n"ineers ,ro- the Cit) 9&ildin" O,,icial
considerin" that )o&r co-pan) is alread) a "rantee o, a le"islati%e ,ranchise. S&ch
bein" the case, the Cit) Go%ern-ent o, Pasi", thro&"h its San""&nian Panl&n"sod,
cannot an)-ore i-pose another ,ranchise ta< or re(&ire )o&r co-pan) to =&sti,) )o&r
le"al, technical and ,inancial capacit) to &ndertae the C$+0 b&siness as these are
alread) e%al&ated, re%ie/ed and passed &pon b) Con"ress. >&rther-ore, accordin" to
)o&, s&ch additional re(&ire-ent o, a san""&nian resol&tion /o&ld de,eat the per-it to
operate a C$+0 "i%en b) the N+C. >inall), )o&r represented that )o& /ere also "i%en a
Ma)or.s per-it on )o&r cable b&siness.
Sho&ld this Depart-ent opine in )o&r co-pan).s ,a%or, )o& are re(&estin" that
this Depart-ent, in the e<ercise o, its ?o%ersi"ht s&per%ision o%er local "o%ern-ents,@
direct the Ma)or o, Pasi" to iss&e the per-it to ho&se )o&r co-pan).s s&ppl) /itho&t
i-posin" an additional re(&ire-ent o, a san""&nian resol&tion.
Aith re"ard to the iss&e that the additional re(&ire-ent o, a san""&nian
resol&tion /o&ld &nder-ine the le"islati%e ,ranchise and the N+C per-it, this
Depart-ent, in the e<ercise o, its "eneral s&per%ision o%er Local Go%ern-ent Bnits
6LGBs7, dee-s it proper to re,er ,irst the -atter to Ma)or 1oberto :&sebio o, Pasi" ,or
his initial co--ent.
Aith re"ard to the i-pendin" i-position o, a local ,ranchise b) the Cit) o, Pasi"
%ia the san""&nian resol&tion, please be in,or-ed that /e had alread) an occasion to
ans/er a si-ilar (&er) in DILG Opinion No. 5#, series o, 2003.
In this re"ard, it bears to note that the a&thorit) to i-pose and collect local
,ranchise ta< b) eth Local Go%ern-ent Bnits 6LGBs7 /as based on the Local
Go%ern-ent Code o, 1221 61$ C1507.
!ence, -a) /e in%ite )o&r attention to Section 10, 1$ 23#2, %iD*
SEC. 10. Tax Provisions. The grantee sha !e s"!#e$t
to the %a&'ent o( a taxes) *"ties) (ees or $harges an*
other i'%ositions "n*er the Nationa Interna Reven"e
Co*e +NIRC, o( 1--.) as a'en*e*) an* other a%%i$a!e
a/s0 Provi*e*) That nothing herein sha !e $onstr"e* as
re%eaing an& s%e$i(i$ tax exe'%tions) in$entives or
%rivieges grante* "n*er an& reevant a/0 Provi*e*) ("rther
That a rights) %rivieges) !ene(its an* exe'%tions
a$$or*e* to existing an* ("t"re $a!e1$o''"nit& antennae
teevision s&ste's sha i2e/ise !e exten*e* to the
grantee.
The grantee sha (ie the ret"rn /ith the $it& or
'"ni$i%ait& /here its %rin$i%a %a$e o( !"siness is o$ate*
an* %a& the taxes *"e thereon to the Co''issioner o(
Interna Reven"e or his *"& a"thori3e* re%resentative in
a$$or*an$e /ith the NIRC an* the ret"rn sha !e s"!#e$t to
a"*it !& the 4"rea" o( Interna Reven"e.5
Aell;settled is the r&le that /hen t/o 627 la/s are in e<istence /hose pro%isions
are in co-plete rep&"nanc), and reconciliation or har-oniDation beco-es i-possible,
?the last one enacted, as the latest e<pression o, the le"islati%e /ill, s&persedes and
repeals the earlier act altho&"h it contains no repealin" cla&se@ (Iloilo Palay and Corn
Planters Association, Inc. vs Feliciano, G.R. No. L-24022, Marc !, "#$%&. Moreo%er,
?/here there are t/o stat&tes, the earlier special and the later "eneral E the ter-s o, the
"eneral broad eno&"h to incl&de the -atter pro%ided ,or in the special E that ,act that
one is special and the other is "eneral creates a pres&-ption that the special is to be
considered as re-ainin" an e<ception to the "eneral, one as a "eneral la/ o, the land,
the other as the la/ o, a partic&lar case@ 6State %s. Stoll, 1C Aall. 6BS7, 32FG cited in
$"palo, Stat&tor) Constr&ction, 2
nd
:d. P. 12#, and 9&t&an Sa/-ill Inc. %s. Cit) o,
9&t&an, 15 SC1$ CFF7.
$ppl)in" there,ore the abo%e =&rispr&dence to the case at hand, it is clear that
Cable Lin and !oldin"s Corporation.s ,ranchise is p&rs&ant to a special la/ /hich /as
enacted solel) and speci,icall) ,or said co-pan). On the other hand, the Local
Go%ern-ent Code o, 1221 61$ C1507 is a "eneral la/ o, a "eneral application, since it
applied to the "o%ernance o, all local "o%ern-ent &nits in the Philippines. +here,ore,
bein" a special la/, Cable Lin and !oldin"s Corporation.s ,ranchise is be)ond the
a-bit o, the pro%isions o, the Code. Moreo%er, Cable Lin and !oldin"s Corporation.s
le"islati%e ,ranchise ca-e a,ter the e,,ecti%it) o, the Local Go%ern-ent Code o, 1221.
1elati%e thereto, in the case o, PLD+ %s Cit) o, Da%ao 6G.1. No. 133#5C, 23
$&"&st 20017, the S&pre-e Co&rt held that the /ithdra/al o, ta< e<e-ptions b) %irt&e
o, Section 13C o, the Code is onl) applicable to e<istin" ,ranchises at the ti-e o, the
e,,ecti%it) o, the Code. +he Decision stated ?<<< Sec. 13C does not state that it co%ers
,&t&re e<e-ptions. <<< +he ta< Code pro%ision /ithdra/in" the ta< e<e-ption /as not
constr&ed as prohibitin" ,&t&re "rants o, e<e-ptions ,ro- all ta<es.
9ased there,ore on the a,oresaid S&pre-e Co&rt r&lin", the Local Go%ern-ent
Code o, 1221 does not operate to precl&de Con"ress ,ro- enactin" s&bse(&ent la/s,
s&ch as 1$ 23#2 /hich is the le"islati%e ,ranchise o, Cable Lin and !oldin"s
Corporation, that ha%e the e,,ect o, s&persedin" an) e<istin" la/Hs on a partic&lar
-atter.
>ore"oin" considered, /e are o, the %ie/ that Cable Lin and !oldin"s
Corporation is e<e-pted ,ro- pa)in" local ,ranchise ta< pro%ided that this sa-e ta<
e<e-ption is accorded to e<istin" cableHco--&nit) antennae tele%ision s)ste-s
p&rs&ant to Section 10, 1$ 23#2.
Ae hope that /e ha%e addressed )o&r concern accordin"l).
0er) tr&l) )o&rs,
9) $&thorit) o, the Secretar)*
ATT6. 7ES8S 4. DO98E I:
Director III
Cc*
8SEC ED8ARDO R. SOLIMAN) 7R
DILG;NC1
MS. TERESITA ;. ;A4AEIR
OIC, CLGOO
DILG;Para'a(&e Cit)