Professional Documents
Culture Documents
Third Division
METRO PACIFIC RESOURCES, CTA AC NO.l74
INC. (Formerly: Cypress Harbour
Properties, Inc.),
Petitioner, Members:
BAUTISTA, Chairperson,
-versus- FABON-VICTORINO, and
RINGPIS-LIBAN, IL
MAKATI CITY AND NELIA A.
BARLIS, IN HER CAP A CITY AS
INCUMBENT CITY TREASURER Promulgated:
OF MAKATI CITY,
Respondents. 017
X ------------------------------------------------------===---------~-~~~~:~: __________ X
DECISION
BAUTISTA, J.:
The Case
/
DECISION
CTA AC NO. 174
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Decision6 dated March 18, 2016, and the Order7 dated August 5, 2016,
both rendered by the Regional Trial Court Branch 57 of Makati City
("RTC"), denying petitioner's claim for refund; and to issue a new
one ordering respondents to refund petitioner the amount of Six
Million Eight Hundred Ninety-Six Thousand Three Hundred Eighty-
Five Pesos and Thirty-Four Centavos (Php6,896,385.34), representing
alleged erroneously collected local business tax ("LBT") for taxable
year ("TY") 2010.s
The Parties9
)
DECISION
CTA AC NO. 174
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The Facts 14
After trial, the RTC rendered a Decision20 dated March 18, 2016,
denying petitioner's claim for refund based on the following
grounds: (1) petitioner is a holding company taxable under Section
3A.02(p) of the RMRC, hence, shall be taxed as a specific class of its
own; and (2) the documents presented by petitioner do not constitute
substantial evidence to prove that it should not be taxed as a holding
company under said Section 3A.02(p) of the RMRC. The dispositive
portion reads, viz.:21
SO ORDERED.22
SO ORDERED.26
The Issues 33
Petitioner's Arguments34
Petitioner also argues that the RTC erred in ruling that it should
be taxed similar to banks and financial institutions under Section
3A.02(h)35 of the RMRC. Petitioner insists that it is a holding company,
and not an investment company nor a bank and/ or other financial
institution; that, a holding company, such as itself, is akin to a
contractor; and thus, it should have been taxed under Section
3A.02(g)36 of the RMRC, and not under said Section 3A.02(h); that
Respondents' Counter-Arguments44
Section 196 of the 1991 LGC governs the rules on claiming for
refund or tax credit of local taxes erroneously or illegally collected:
the claim, on January 29, 2013, petitioner filed a Complaint49 with the
RTC, to which the latter denied in a Decisionso dated March 18, 2016.
51 Underscoring ours.
52 RTC Records, Vol. 2, Return Card, p. 685-A.
53 Records, respondents' Comment (Re: Petition for Review dated 20 September 2016), pp. 124-149.
54 Id., Memorandum (for the Respondents), pp. 181-207.
DECISION
CTA AC NO. 174
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RULE7
Rule 42
58 Citations omitted.
59 G.R. No. 168115, June 8, 2007, 524 SCRA 333.
DECISION
CTA AC NO. 174
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Having settled the foregoing, the Court will now resolve the
issue on the propriety of assessment made, and whether a refund is
warranted.
In the case of ASC Investors, Inc. v City of Davao and Hon. Rodrigo
S. Riola, in his capacity as the City Treasurer of Davao City62 ("ASC
63 Citations omitted.
DECISION
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I
DECISION
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(
DECISION
CTA AC NO. 174
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Having settled the foregoing, the Court will now discuss the
propriety of subjecting petitioner's dividend income to business tax
under Section 3A.02(h) of the RMRC.
64 Citations omitted.
65 CTA AC No. 166, January 6, 2017.
(
DECISION
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66 Underscoring ours.
I
DECISION
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67 SECTION 133. Common Limitations on the Taxing Power of Local Government Units. -
Unless otherwise provided herein, the exercise of the taxing powers of provinces,
cities, municipalities, and barangays shall not extend to the levy of the following:
(a) Income tax, except when levied on banks and other financial
institutions;
68 Allied Banking Corporation as Trustee for the Trust Fund of CAP v. The Quezon City Government, et.
al., G.R. No. 154126, October 11, 2005, 472 SCRA 303.
DECISION
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the next calendar year or the tax due from him for the same
business of said calendar year.
SO ORDERED.
LOVELL~- BAUTISTA
Associate Justice
69 RTC Records, Vol. 1, Offer of Testimony, Annex E, Administrative Claim for Refund, pp. 408-417.
70 Id., Annex C, Complaint, pp. 1-43, with annexes.
DECISION
CTA AC NO.l74
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WE CONCUR:
QJ.vr. ~ 4 '-- .
MA. BELEN M. RINGPIS-LIBAN
Associate Justice
ATTESTATION
LOVELL~. BAUTISTA
Associate Justice
Chairperson
CERTIFICATION
ROSARIO
Presiding Justice