Case Digest (G.R. No. 197937)
Facts:
- The case involves the Film Development Council of the Philippines (petitioner) and SM Prime Holdings, Inc. (respondent).
- SM Prime Holdings operates cinema houses at SM Cebu and is subject to amusement tax under Republic Act (R.A.) No. 7160, the Local Government Code of 1991.
- This law permits local government units to impose an amusement tax of up to 30% on gross receipts from admission fees.
- On June 21, 1993, Cebu City approved City Tax Ordinance No. LXIX, establishing a similar amusement tax structure.
- R.A. No. 9167 was enacted in 2002, creating the Film Development Council of the Philippines, which implements an incentive system for film producers based on merit.
- The law includes provisions for amusement tax rewards for films graded favorably by the Cinema Evaluation Board (CEB) and mandates that collected taxes on graded films be remitted to the Council.
- On January 27, 2009, the petitioner demanded payment of P76,836,807.08 from the respondent for amusement tax rewards for 89 films shown from September 11, 2003, to November 4, 2008.
- In May 2009, Cebu City filed a petition for declaratory relief against the petitioner, questioning the constitutionality of certain provisions of R.A. No. 9167.
- The Cebu City RTC issued a temporary restraining order against the petitioner, preventing the collection of the amusement tax incentive award.
- On October 16, 2009, the petitioner filed a collection suit against the respondent in the RTC of Pasig City.
- The respondent moved to dismiss the case, claiming prior payments extinguished the claim and raised the issue of litis pendentia.
- The Pasig City RTC granted the motion to dismiss on February 21, 2011, prompting the petitioner to appeal.
Issue:
- (Unlock)
Ruling:
- The Supreme Court denied the petition for review on certiorari.
- The Court affirmed the orders of the RTC of Pasig City dated February 21, 2011, and July 25, 20...(Unlock)
Ratio:
- The Supreme Court confirmed that the principle of litis pendentia was correctly applied by the RTC of Pasig City.
- Litis pendentia occurs when two actions are pending between the same parties for the same cause of action, rendering one unnecessary and vexatious.
- The Court found that the requirements for litis pendentia wer...continue reading
Case Digest (G.R. No. 197937)
Facts:
The case involves the Film Development Council of the Philippines (petitioner) and SM Prime Holdings, Inc. (respondent). The events leading to the case began when SM Prime Holdings, Inc., the owner and operator of cinema houses at SM Cebu in Cebu City, was subject to amusement tax under Republic Act (R.A.) No. 7160, also known as the Local Government Code of 1991. This law allows local government units to levy an amusement tax of up to 30% on gross receipts from admission fees. On June 21, 1993, the Sangguniang Panglunsod of Cebu City approved City Tax Ordinance No. LXIX, which established a similar amusement tax structure.
In 2002, R.A. No. 9167 was enacted, creating the Film Development Council of the Philippines, which was tasked with implementing an incentive system for film producers based on merit. This law included provisions for amusement tax rewards for films graded favorably by the Cinema Evaluation Board (CEB). The law mandated that amusement tax collected on graded films be remitted to the Council, with penalties for non-compliance.
On January 27, 2009, the petitioner sent a demand letter to the respondent for the payment of P76,836,807.08, representing amusement tax rewards due for 89 films shown at SM Cinemas from September 11, 2003, to November 4, 2008. In May 2009, the City of Cebu filed a petition for declaratory relief against the petitioner, questioning the constitutionality of certain provisions of R.A. No. 9167. The Cebu City RTC issued...