Case Digest (G.R. No. 181845)
Facts:
In The City of Manila, Liberty M. Toledo & Joseph Santiago v. Coca-Cola Bottlers Philippines, Inc. (G.R. No. 181845, August 4, 2009), petitioners City of Manila, acting through Treasurer Liberty M. Toledo and Licensing Chief Joseph Santiago, assessed respondent Coca-Cola Bottlers Philippines, Inc. for alleged deficiency local business taxes, penalties, and interest totaling ₱18,583,932.04 for the third and fourth quarters of 2000. Prior to February 25, 2000, respondent paid taxes only under Section 14 of Tax Ordinance No. 7794, enjoying the exemption in Section 21 of that ordinance. On February 25, 2000, the City enacted Tax Ordinance No. 7988 amending Sections 14 and 21—deleting the exemption—and followed up on February 22, 2001, with Ordinance No. 8011. Before the Supreme Court could declare those ordinances void in Coca-Cola Bottlers Philippines, Inc. v. City of Manila (G.R. No. 156252, June 27, 2006), the City assessed respondent under the amended Section 21. Coca-Cola filedCase Digest (G.R. No. 181845)
Facts:
- Parties and Context
- Petitioners: City of Manila (public corporation), Liberty M. Toledo (City Treasurer), and Joseph Santiago (Chief, Licensing Division).
- Respondent: Coca-Cola Bottlers Philippines, Inc., manufacturer and seller of beverages in Manila.
- Tax Ordinances and Assessments
- Tax Ordinance No. 7794 (“Revenue Code of the City of Manila”) imposed:
- Section 14: graduated tax on manufacturers/processors of goods (including beverages).
- Section 21: 50% of 1% on gross receipts of businesses subject to national excise/VAT/percentage taxes, with a proviso exempting “registered businesses . . . already paying the aforementioned tax.”
- Tax Ordinances No. 7988 (Feb 25, 2000) and No. 8011 (Feb 22, 2001) amended 7794 by increasing rates and deleting the Section 21 exemption; later declared null and void in Coca-Cola Bottlers Philippines, Inc. v. City of Manila (G.R. No. 156252, June 27, 2006).
- Based on the amended Section 21, the City assessed respondent for deficiency business taxes (3rd & 4th quarters 2000) totaling ₱18,583,932.04.
- Lower-Court Proceedings
- Respondent protested “double taxation” (Sections 14 & 21); no response led to filing of Civil Case No. 03-107088 before RTC Manila.
- RTC Decision (July 14, 2006): dismissed cancellation suit for lack of double taxation; Order (Nov 16, 2006) on reconsideration: cancelled assessment, barred further Section 21 assessments; Motion for Reconsideration denied (April 4, 2007).
- Petitioners filed motions for extension and late Petition for Review with CTA First Division (C.T.A. AC No. 31); CTA Div. Resolutions (May 24 & June 8, 2007) dismissed as out-of-time and non-compliant; motion for reconsideration denied (July 26, 2007).
- CTA en banc (Jan 18, 2008) dismissed petition, affirmed CTA Div.; denied reconsideration (Feb 18, 2008).
- Petitioners filed Supreme Court Petition for Review on Certiorari under Rule 45.
Issues:
- Whether petitioners substantially complied with the period to appeal to the CTA.
- Whether the Coca-Cola case is doctrinal and controlling.
- Whether the City may still assess taxes under Sections 14 and 21 of Tax Ordinance No. 7794.
- Whether enforcing Section 21 of Tax Ordinance No. 7794 constitutes double taxation.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)