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    Lorenz Luistro
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    The Philippine Telegraph and Telephone Corporation was granted a franchise to operate telecommunications services and was required to pay a 1.5% franchise tax on gross receipts. A subsequent law stated that if any competitor received more favorable terms, those terms would also apply to PTTC. Another company later received a franchise tax of only 0.5%. PTTC claimed it should also pay the lower 0.5% rate based on the subsequent law. However, the Supreme Court dismissed the case, finding that taxation is a sovereign power that is not presumed to be relinquished without clear language. The dispute must be resolved by the Bureau of Internal Revenue rather than the Supreme Court.

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    PT VS CA

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    PT VS CA

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    The Philippine Telegraph and Telephone Corporation was granted a franchise to operate telecommunications services and was required to pay a 1.5% franchise tax on gross receipts. A subsequent law stated that if any competitor received more favorable terms, those terms would also apply to PTTC. Another company later received a franchise tax of only 0.5%. PTTC claimed it should also pay the lower 0.5% rate based on the subsequent law. However, the Supreme Court dismissed the case, finding that taxation is a sovereign power that is not presumed to be relinquished without clear language. The dispute must be resolved by the Bureau of Internal Revenue rather than the Supreme Court.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    8 views1 page

    PT VS Ca

    Uploaded by

    Lorenz Luistro
    The Philippine Telegraph and Telephone Corporation was granted a franchise to operate telecommunications services and was required to pay a 1.5% franchise tax on gross receipts. A subsequent law stated that if any competitor received more favorable terms, those terms would also apply to PTTC. Another company later received a franchise tax of only 0.5%. PTTC claimed it should also pay the lower 0.5% rate based on the subsequent law. However, the Supreme Court dismissed the case, finding that taxation is a sovereign power that is not presumed to be relinquished without clear language. The dispute must be resolved by the Bureau of Internal Revenue rather than the Supreme Court.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    PHILIPPINE TELEGRAPH AND TELEPHONE CORPORATION, petitioner,

    vs.
    THE COMMISSION ON AUDIT and HON. FRANCISCO S. TANTUICO, JR., Acting
    Chairman, Commission on Audit, respondents.

    Facts:

    Petitioner was granted a franchise to establish, install, maintain and opertae wire and/or wireless
    telecommunications systems, lines, circuits and stations throughout the Philippines for public,
    domestic and international communications under RA 4161. The petitioner was required to pay a
    franchise tax of 1 ½% on all gross receipts from business transacted. RA 5048 was passed stating
    that “any competing individual, partnership or corporation, receiving a similar permit or
    franchise with terms and/or provisions more favorable than those granted under Republic Act
    No. 4161, or tending to place Philippine aTelegraph and Telephone Corporation at any
    disadvantage, then such term or terms and/or provisions shall ipso facto become part of the terms
    and/or provisions of Republic Act No. 4161, and shall operate equally in favor of petitioner as in
    the case of said competing individual, partnership or corporation." Domestic Satellite
    Philippines, Inc. was granted Pres. Decree no. 957 a franchise to operate as carrier through the
    use of space relay and repeater stations for domestic public communications with authority to
    receive and transmitted messages, impressions, pictures, music, entertainment, advertising, and
    signals throughout the Philippines and between the Philippines and ships at sea, airplanes. The
    Commission on Audit in examining books of the petitioner foung that petitioner still has liability
    to pay for the franchise. Petitioner claims that it should be imposed ½% in pursuance of the most
    favored treatment clause of RA 4161.

    Issue:

    WON the Supreme Court can review the matter between Philippine Telegraph and Telephone
    Corporation and COA.

    Held:

    No. The Supreme Court finds the case is devoid of merit. The matter must be resolved with the
    Bureau of Internal Revenue. Petitioner claims that claiming the RA 4164 treatment it must
    reduce the payment of taxes to the government. The Court said that the taxation power is a high
    prerogative of sovereignty, its relinquishment is never presumed. The petition is dismissed for
    lack of merit.

    Lorenz James Luistro 1-E

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