Skip to content

Telephone: +6328734-9673

Mobile: +63917-436-3437

Email: info@acctaxph.com

Schedule a Free Consultation
  • HOME
  • SERVICES
  • ARTICLES
    • Bureau of Internal Revenue
    • Court of Tax Appeals Decisions
    • Securities and Exchange Commission
  • ABOUT US
  • CAREERS
  • CONTACT US
Menu
  • HOME
  • SERVICES
  • ARTICLES
    • Bureau of Internal Revenue
    • Court of Tax Appeals Decisions
    • Securities and Exchange Commission
  • ABOUT US
  • CAREERS
  • CONTACT US

Php 37 million local business tax assessment canceled; City treasurer must be authorized to file a case in the form of City Charter or Resolution; Common carriers are exempt from local business tax.

A local government unit (LGU) has the power to sue through its officials. However, before a city official can exercise the LGU’s power to sue, a law granting such prerogative must first be passed (i.e. City Charter). Otherwise, a city official can only exercise such power if a resolution is passed by the Sangguniang Panglungsod authorizing him to sue on behalf of the City.

  • In the instant case, the Charter does not provide an express grant of power to the treasurer to initiate and prosecute suits. Neither was there a resolution passed as proof of the treasurer’s authority.

Under the Local Government Code, taxes on the gross receipts of transportation contractors and person engaged in the transportation of passengers or freight by hire or common carriers are not subject to local business tax.

  • In this case, the taxpayer is engaged in the business of freight forwarding. It is engaged in international freight and/or cargo consolidation and forwarding by means of air and sea transportation. It is a common carrier not subject to local business tax (City of Paranaque v. Kuehne + Nagel, Inc., CTA EB No. 2130, CTA AC No. 189, Civil Case No. 07-0370, July 17, 2020)
Bureau of Internal Revenue - Dumlao & Co.
Senate of the Philippines - Dumlao & Co.
Securities and Exchange Commission - Dumlao & Co.
Tax Management Association of the Philippines - Dumlao & Co.
House of Representative - Dumlao & Co.
Court of Tax Appeals - Dumlao & Co.
Copyright 2023 Dumlao & Co. All Rights Reserved.

Articles

  • Court of Tax Appeals Decisions
  • Securities and Exchange Commission
  • Bureau of Internal Revenue
Menu
  • Court of Tax Appeals Decisions
  • Securities and Exchange Commission
  • Bureau of Internal Revenue

Contact Us

  • Unit 204, McKinley Park Residences and Commercial Building 3rd Ave. Bonifacio Global City Taguig City, Philippines
  • +6328734-9673
  • ron@acctaxph.com