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Commissioner Of Internal Revenue vs. Philippine Global Communications, Inc..

COMMISSIONER OF INTERNAL REVENUE, Petitioner, versus PHILIPPINE GLOBAL COMMUNICATIONS, INC., Respondent.

G.R. No. 144696 | 2006-08-16

THIRD DIVISION

D E C I S I O N 

CARPIO MORALES, J.: 

Is respondent telecommunications company, Philippine Global Communications, Inc., liable to pay the 3% franchise tax under Section 117 (b) of Presidential Decree No. 1158 or the 1977 National Internal Revenue Code (Tax Code) during the suspension of the enforcement or implementation of Republic Act No. 7716[1] or the Expanded Value Added Tax Law (E-VAT Law) which was passed in 1994 amending such provision of the Tax Code? 

Respondent operates under a legislative franchise granted by Republic Act No. 4617 to construct, maintain and operate communications systems by radio,...