Case Digest (G.R. No. 204117)
Facts:
In China Banking Corporation v. City Treasurer of Manila, the petitioner China Banking Corporation (CBC) challenged the collection of ₱154,398.50 imposed under Section 21 of the Manila Revenue Code as amended by Ordinance Nos. 7988 and 8011. On January 11, 2007 the City Treasurer assessed CBC’s Sto. Cristo Branch for local business taxes and fees totaling ₱267,128.70, of which ₱154,398.50 represented the additional tax under Section 21. CBC paid the full amount under protest on January 15, 2007 and, through a letter of the same date, formally protested the Section 21 assessment as constituting double taxation and demanded its refund. The City Treasurer acknowledged receipt but took no action within the sixty‐day period prescribed by Section 195 of the Local Government Code (LGC). CBC then wrote on March 27, 2007 reiterating its objection and demanding refund. When no resolution followed, CBC filed on April 17, 2007 a petition for review with the Regional Trial Court (RTC), Branc...Case Digest (G.R. No. 204117)
Facts:
- Assessment and Payment
- In January 2007, based on CBC’s Sto. Cristo Branch reported 2006 income of ₱34,310,777.34, the City Treasurer assessed CBC for ₱267,128.70 covering local business tax, permits, and fees, including ₱154,398.50 under Section 21 of Manila Ordinance Nos. 7988 and 8011.
- On January 15, 2007, CBC paid the full ₱267,128.70 under protest, protesting by letter dated January 12, 2007 the additional ₱154,398.50 tax as double taxation.
- Protest Correspondence and Demand for Refund
- February 8, 2007 – City Treasurer acknowledged payment under protest and awaited formal protest.
- March 27, 2007 – CBC reiterated its January protest, invoked the 60-day decision period under Section 195, LGC, demanded refund of ₱154,398.50.
- Petition with the Regional Trial Court
- April 17, 2007 – CBC filed a Petition for Review (Civil Case No. 07-117075) in RTC Manila Branch 173, challenging liability under Section 21.
- August 28, 2008 – RTC granted the petition, ordering refund of ₱154,398.50, citing DOJ opinion, Coca-Cola decision, and mayoral memorandum declaring Ordinances 7988 and 8011 unconstitutional.
- March 29, 2010 – RTC denied City Treasurer’s motion for reconsideration.
- Proceedings Before the Court of Tax Appeals
- October 1, 2010 – CTA Third Division reversed RTC for lack of jurisdiction and timeliness: CBC’s petition filed one day late under Section 195, LGC; assessment became final. Motion for reconsideration denied.
- October 18, 2012 – CTA En Banc affirmed CTA Division: CBC had 60 days (to March 16, 2007) to await protest resolution, then 30 days (to April 16, 2007) to appeal; petition filed April 17 was late by one day. CBC’s motion for reconsideration denied.
- Supreme Court Proceedings
- January 30, 2013 – SC denied CBC’s petition for review.
- March 10, 2014 – SC granted CBC’s motion for reconsideration and reinstated the petition, directed memoranda, leading to the present decision.
Issues:
- Whether the CTA En Banc gravely erred in dismissing CBC’s refund claim solely because the petition for review with the RTC was filed one day beyond the reglementary period under Section 195, LGC.
- Whether the RTC had jurisdiction to entertain CBC’s petition for review or whether the petition should have been filed with a court of competent jurisdiction (MeTC).
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)