Case Digest (G.R. No. 166408) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In ABS-CBN Broadcasting Corporation v. Quezon City and the City Treasurer of Quezon City, G.R. No. 166408, decided October 6, 2008 under the 1987 Constitution, the City Government of Quezon City (Quezon City) enacted the 1993 Revenue Code imposing a local franchise tax on businesses operating within its jurisdiction pursuant to Section 31, Article 13. On May 3, 1995, ABS-CBN was granted a national legislative franchise under Republic Act No. 7966, Section 8 of which provided that it would pay a 3% franchise tax “in lieu of all taxes” on its broadcasting earnings, except for income taxes. ABS-CBN continued to pay the local franchise tax to Quezon City but, believing itself exempt under its franchise, paid under protest the amounts of ₱1,489,977.28 (twice in 1995), ₱2,880,975.65 (1996), and three payments in 1997 totaling ₱13,023,742.45, aggregating ₱19,944,672.66. On January 29, 1997, ABS-CBN filed a written claim for refund of ₱14,233,582.29 covering 1996 and the first quarter o Case Digest (G.R. No. 166408) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Parties and Local Tax Ordinance
- Petitioners: Quezon City government and its City Treasurer, charged with imposing and collecting local taxes under Quezon City Revenue Code of 1993 (Section 31, Article 13).
- Respondent: ABS-CBN Broadcasting Corporation, a private franchise grantee.
- Legislative Franchise and Tax Provisions
- R.A. No. 7966 (granted May 3, 1995): Franchise to install and operate radio/TV stations; Section 8 requires a 3% franchise tax “in lieu of all taxes on this franchise or earnings thereof,” plus standard real estate and income taxes.
- Local ordinance imposes a franchise tax of 0.1%–0.3% of gross receipts for franchise holders doing business in Quezon City, without exception for national franchise grants.
- Payment Under Protest and Refund Actions
- ABS-CBN paid local franchise taxes from 1995–1997 amounting to ₱19,944,672.66, rendering payments under protest.
- ABS-CBN filed (a) a written claim for refund (₱14,233,582.29) in January 1997; (b) a complaint in the RTC seeking nullification of local franchise tax and refund of all payments; (c) a supplemental complaint for additional payments.
Issues:
- Whether the “in lieu of all taxes” clause in Section 8 of R.A. No. 7966 exempts ABS-CBN from the local franchise tax imposed by Quezon City.
- Whether Quezon City and its Treasurer raised factual and legal issues before the Court of Appeals, affecting its jurisdiction.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)