Criselda C.

Galaura

Discussion Problem No. 1

The municipality of Borbon, with the aid of funds from the national government, constructed a
wharf in its municipality. Later on, it passed an ordinance imposing a berthing fee on vessels for
mooring or berthing at its municipal wharf. 

Is the ordinance valid?

Yes,the ordinance in the Municipality of Borbon is valid. It stated in SECTION 132. Local Taxing
Authority - The power to impose a tax, fee, or charge or to generate revenue under this Code
shall be exercised by the Sanggunian of the local government unit concerned through an
appropriate ordinance.

Discussion Problem No. 2

The City of Marikina enacted an ordinance imposing a tax of one peso (1.00) on every pair of
shoes taken out of the municipality. 

Is the tax valid?

It's not valid because imposing a tax on each thing is to much which could affect the buyers
outside the City of Marikina. If this may happen, it would lead to not buying the said pair of
shoes since the ordinance is not fair on the side of the buyers. In my perspective the City should
imposed a taxes that could protect the right of its people including the sellers and buyers of the
product.

Discussion Problem No. 3

The Sangguniang Panlungsod of XYZ City passed a resolution ratifying the contract entered into
between Mayor Castro and Palawan Express authorizing the latter to collect all fees, taxes,
licenses, and other charges imposed by the city. In return, Palawan Express will receive a
commission of 5% of its collection.

Required:

1. Is the contract valid?

No, because of conflict of interest. Conflicts of interest can lead to harmful misperceptions.
When large sums of money are involved, it may be difficult for Mayor Castro to disclose all the
information involving him and the Palawan Express resulting to biased for personal gain.

2. How about the resolution?

Contracts or agreements with any person or entity which the ordinance or resolution under
consideration may affect. In the absence of a specific constitutional or statutory provision
applicable to this situation, "conflict of interest" refers in general to one where it may be
reasonably deduced that a member of a Sanggunian may not act in the public interest due to
some private, pecuniary, or other personal considerations that may tend to affect his judgment
to the prejudice of the service or the public.

Discussion Problem no. 4

The Sangguniang Panlalawigan upon motion of Board Member Malazarte enacted a provincial
ordinance imposing sand and gravel tax on stones, sand, gravel, earth and other quarry
resources.

A municipality within the province enacted similar tax ordinance.

Required:

Which local government unit should collect the tax?

SECTION 138. Tax on Sand, Gravel and Other Quarry Resources - The province may levy and
collect not more than ten percent (10%) of fair market value in the locality per cubic meter of
ordinary stones, sand, gravel, earth, and other quarry resources, as defined under the National
Internal Revenue Code, as amended, extracted from public lands or from the beds of seas,
lakes, rivers, streams, creeks, and other public waters within its territorial jurisdiction.

The permit to extract sand, gravel and other quarry resources shall be issued exclusively by the
provincial governor, pursuant to the ordinance of the Sangguniang Panlalawigan.

The proceeds of the tax on sand, gravel and other quarry resources shall be distributed as
follows:
(4) Province - Thirty percent (30%);
(5) Component City or Municipality where the sand, gravel, and other quarry resources are
extracted - Thirty percent (30%); and
(6) Barangay where the sand, gravel, and other quarry resources are extracted - Forty percent
(40%).

Discussion Problem no. 5.

In one taxation class, the tax teacher informed the students that before a certified public
accountant or any PRC Registered professional can legally practice his profession, he should
first secure PTR which is a tax imposable by cities or provinces.

Required:

a. What is the meaning of PTR?

PTR stands for Professional Tax Receipt

b. Which local government unit is authorized to impose this tax? What tax is this?

Professional Tax wherein provinces, cities and the lone municipality within the MMA are
authorized to impose this tax.

c. How much should be paid by the professional?

Not to exceed Php 300.00, or the rate provided under a duly enacted local ordinance, subject to
adjustment not exceeding ten percent(10%) every five (5) years.

d. Are professionals employed in the government required to secure PTR?

No, professionals exclusively employed in the government shall be exempt from the payment of
this tax unless he/she has been duly authorized to practice the profession outside of his/her
official functions.