Law Summary

SECTION 1: Amendment to Section Seven of Republic Act No. 697

Legal Principle/Provision

This section amends Section Seven of Republic Act No. 697, governing the tax liabilities of the grantee involved in the telephone or electrical transmission business.

Key Definitions Introduced

• Grantee: The entity or individual granted a franchise to operate a telephone or electrical transmission business under Republic Act No. 697, along with its successors or assigns.

Important Requirements or Procedures Outlined

• The grantee must pay the same taxes on:
  • Real estate
  • Buildings
  • Personal property
• The payment of these taxes is required to be consistent with the obligations of other persons or corporations as mandated by law.

Relevant Timeframes, Deadlines, or Expiration Details

• The grantee is required to remit 2% of all gross receipts from the telephone or electrical transmission business:
  • This payment is due within ten days following the audit and approval of the accounts, as prescribed in Section Six of the Act.

Penalties, Liabilities, or Consequences Mentioned

• Failure to comply with the tax payments may result in liabilities similar to those applicable to other corporations and individuals under relevant tax laws.

SECTION 2: Effectivity of the Act

Legal Principle/Provision

This section establishes the enactment provisions for the amendment.

Important Requirements or Procedures Outlined

• The Act will take effect upon its approval.

Key Takeaways

• The amendment clarifies the tax obligations of the grantee under Republic Act No. 697, ensuring they are liable for real estate, buildings, and personal property taxes similar to other entities.
• Additionally, the grantee must pay a specified percentage of gross receipts, with a clear deadline for payment following account audits.
• The Act's provisions emphasize compliance with tax obligations and outline the operational timeline for implementation.