Case Digest (G.R. No. 180235)
Facts:
The case involves Alta Vista Golf and Country Club (petitioner) against the City of Cebu, Mayor Tomas R. Osmeña, and City Treasurer Teresita C. Camarillo (respondents). The dispute arose from the imposition of an amusement tax on the golf course operated by the petitioner, which is a non-stock and non-profit corporation. The Sangguniang Panlungsod of Cebu City enacted City Tax Ordinance No. LXIX on June 21, 1993, which included Section 42 concerning amusement taxes. This section was amended by subsequent ordinances, specifically City Tax Ordinance Nos. LXXXII and LXXXIV, which set the amusement tax rate for golf courses at 20% of gross receipts.
In an assessment dated August 6, 1998, the petitioner was assessed a total of P3,820,095.68 in deficiency business taxes, which included P2,612,961.24 for amusement tax based on gross receipts of P13,064,806.20. The City of Cebu repeatedly attempted to collect this tax, but the petitioner refused, arguing that the imposition was ill...
Case Digest (G.R. No. 180235)
Facts:
Subject Matter: The case involves a Petition for Review on Certiorari filed by Alta Vista Golf and Country Club (petitioner) against the City of Cebu, its Mayor, and City Treasurer (respondents) regarding the imposition of amusement tax on its golf course.
Background:
- Petitioner’s Operation: Alta Vista Golf and Country Club is a non-stock, non-profit corporation operating a golf course in Cebu City.
- Tax Ordinance: On June 21, 1993, Cebu City enacted City Tax Ordinance No. LXIX, which included Section 42 imposing amusement tax on various establishments, including golf courses at a rate of 20%. This was later amended by City Tax Ordinance Nos. LXXXII and LXXXIV.
- Tax Assessment: In 1998, petitioner was assessed deficiency business taxes, including amusement tax amounting to P2,612,961.24 based on gross receipts from its golf course. Petitioner refused to pay, arguing that Section 42 was illegal since amusement tax under the Local Government Code (LGC) could only be imposed on theaters, cinemas, and similar places, not golf courses.
- Continued Dispute: Despite repeated demands, petitioner refused to pay, leading to a Closure Order issued by the City Mayor in December 2005 for operating without a business permit and nonpayment of taxes.
Legal Proceedings:
- RTC Petition: Petitioner filed a Petition before the RTC seeking to nullify the Closure Order, assessment, and Section 42 of the tax ordinance. The RTC dismissed the petition, citing procedural lapses, including failure to exhaust administrative remedies under Section 187 of the LGC.
- Payment Under Protest: Petitioner later paid the amusement tax under protest but maintained its position that the tax was illegal.
Issue:
- Whether the power of judicial review over the validity of a local tax ordinance has been restricted by Section 187 of the LGC.
- Whether the City of Cebu or any local government unit can validly impose amusement tax on golf courses.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)