Fiscal Incentives Provided
- The grantee (Camiguin Telephone Cooperative) shall enjoy fiscal incentives under Republic Act No. 6938, known as the "Cooperative Code of the Philippines," as amended.
- These incentives are granted for a period of ten years starting from the effectivity date of the amendment.
- The fiscal incentives are intended to support cooperative operations within the scope of the franchise.
Compliance Requirements
- The grantee must comply with all requirements and conditionalities prescribed under Republic Act No. 6938 before availing of the tax incentives.
- Compliance includes adherence to applicable rules, regulations, and procedural requirements under the Cooperative Code.
Effectivity of the Amendment
- The amendment takes effect fifteen (15) days after its publication.
- Publication must be done by the grantee in at least two newspapers of general circulation in the Philippines.
- This ensures public notice and transparency regarding the amended tax provisions.
Legislative Process and Approval
- The amendment originated in the House of Representatives and was passed by the House and Senate on August 16, 2000, and February 5, 2001, respectively.
- It was signed into law by the President of the Philippines on April 20, 2001.
Key Legal Concepts
- Franchise: The legal authorization granted to Camiguin Telephone Cooperative to construct, establish, install, maintain, and operate a local exchange network.
- Fiscal Incentives: Tax exemptions or reductions provided to cooperatives to promote their viability and service efficiency.
- Compliance and Conditionalities: Obligations that must be met under the Cooperative Code to benefit from incentives.
- Public Notice: Requirement for transparency and information dissemination through newspaper publication before effectivity.