Back

PT&T Corp. vs. Comm. Audit, et al.

PHILIPPINE TELEGRAPH AND TELEPHONE CORPORATION, petitioner, vs. THE COMMISSION ON AUDIT and HON. FRANCISCO S. TANTUICO, JR., Acting Chairman, Commission on Audit, respondents.

G.R. No. L-55236 | 1986-12-12

D E C I S I O N


PARAS, J:

Petitioner Philippine Telegraph and Telephone Corporation (PT & T), for short) was granted on June 20, 1964, under Republic Act No. 4161, a franchise "to establish, install, maintain and operate wire and/or wireless telecommunication systems, lines, circuits and stations throughout the Philippines for public, domestic and international communications." Under the said franchise, the petitioner is required to pay a franchise tax of one and one-half per cent (1 1/2%) on all gross receipts from business transacted thereunder.

Under the provisions of a subsequent law, Republic Act No. 5048, in the event of "any...