CTA Case No. 5060

DECISION

C.V.A. CAS NO. 5060 the said claim also thatuded (he payment oT the tranchise tax in the amount of P10, 256,031.00 corresponding to Che thirc quarter of tyys.

fet tl potest based tts uolatin foe be find On thes Court os Gdeuviston ehttitied Repubblica broadcasting bys tem ins. VS. GOMMI SS POdet Ob dwbatinad Hoevenwe, CHA Case No, 463u, dudy oe, (iste , why dcode parted that bey vibe bue ot Presidential Deatioe Meo. fy fe Fs all wx isk bing Padi ated! televisteon franchise were Pepeadied ahd termtivated, hence during (tie pre’ ford muvee aid by Cle present claim, petit ids ete bi witha fol wee bot tary tdtacbesd a PranoGchise, thus, mol bf bethebe for bi atichhtoe tax, fits ts the Peason why the payients Wade: cbue bday the sata pet tod dbie WW beitu refrulhdwa try the pretrttotrert fheihices | thre Cottle t > in the aforemenblroned hepHebtic broadsastthy case, whteh was decided Ph bavod at tlie petit l duet, crcetbee b betel 1 tres dericienay Pi anGohboe lax ASHE SHNeNtTS oO the ground thal petitioner thereiti dta not exiatl dhdet a fhrauehise Wut ding the prer pcied Covered by t tres assessment. Petitioner, herein, How Gia dms too be tt oa oubint bat srtttabtun as Republi broadcasting system. bho... beoause it 1S also engayed bie Pade aiel @ebeves tot bioadcastitng, thus. tt mus t be given fhe sane Lica bttertit tty fire brah tof the aforecttied case deetded by Liis Gowet.

AS as altlertiative Gause of ation, pelttroner asserted that of thts GUourt deGcordes that it is ated

DECISION

G.V.A. CASE NO. 5060 fiable for the TranchiGce tax then rts Lax rate should ouly be 3% of its yross receipts and tot 6% as ortyinalty paid ti Ubi jighiooof meat ban Al of Hepubite Act 6&1 athe ndeci by Hepubdii«e Bil OF GU, tthe baw qtidantaitey to theis tianohise, th peiabben bo seution & OF Hepubti (262, whet granted Higptrbd to iioadteagsting a franchise, the two Seetions ate Qtotled hereunder thus RAL NO. DPI, aS aitended by HLA, AO. OF G0 “Seution 4. Lat the wurit wl any cope boa drag Pada vbstadd , pabbiorotap cv) GQOr por ad tots peee PW Ec ears Lhe (obyleds ei s bubt baa Lomproricr yo pred nbs t wi Pi ahotbaeats tt what there sha bl dee ahy Lori ei deris Meie favatable than those det eda Qi atited ot Leindtnd Co place the fee @ bb ape cates atoany disadvantage. then such Lei irs terms ohadd, Poser fata, become a peas t 7 on aS beds herbert vufend Shall operable eequecad ly ti fayvat soto odbc spt ahbtec as ta bie Case ar seb ompiet tag Preciaw fea d . pal tue she pe wt oopypor ad bate Ht.A. No. @febe “seth boa es. tax Mirae Ss Fs. {hic Ve ah Cee its Svecesy soars en) ass tyns gshall foe: ee er) tis jucvy thet gate Lakes wt there 1 cvit t eslate, pepo dadlb trays ain pernvial Phauper ly exo d tes dy ob bfris fi anohtae ag Other prmoebeons or vatpotalbtans are Wow OF bhePeral ies tied boc Pecqurrwe by law (oe pay. th add; tow therete the yebantee, ths pases saurs ut ash buys shat + Joay a bttaunabltse Lana ciaivabeml to Cbt oe port oat id%) oy ald Cpl teoe ke fatitwdpil es tif U tre: radtaofjlefevisture bUuntlhiess lbehoadolcudl vtidet thas Pranohiow. by Cle giranter, tts BUGUessors ur Aba tight ad thie ali pet Genlayge phalt be tis lie of afl taxes on thts ttanchise or earnings thereorre Kx Kx x."

1, as ttherin c Act thio w

DECISION

G.1.A. CASE NO. 5060 Ht 18 petittoner i's analysis that the aforequoted sections taken lLogelher witt tead to a conotustonm that it shall ohly be liabie for the G% Pranchise tax ou its gross Pea bpd fa ote baad aid tat bolton broadcasting aGolivitdes, thimb ots fy the event thes Court deocrdes that peo o@#S wt tid Pbadabe fon tie Pt ane ae Cae Her Gpuiietent remathed orient ott thts Ghatm Por pred une so petrbromer tb bed @ pel tl tom tot tevicw welt this court on daniary 18, lewd and at attended petrilronm on oeplember 29, fyuh Petbheb iret tig abd oar tite abtjtt#eantle prooenoombect it the adwtntstiabtve fewest thie wba Podbore: bitter pases by tite respondent cenlers on Titre abipthretil Cbliat viet be: Ulee aboremedl toned Seuolloi o ul Prestifoutiald fiery ues Nu Of aA Pevaked add ado l thie tratedbises ; nonethedesrs, the thiibes owe ed sh festored by the ficense tates bstitberad by ties Nativtiiad belecotmintcatl ions Com d So pots ahd Chive ised ela y if biansportabrean aiid Cottmuntoattonh it) faa ol thie franchise, which hal thie effeat of Ppeinstating their respecttve Tiranehises (p. 59, ANSWeEr , tba raw. AS a hatter of tat lirey wetil om tu operate rH woe atter their franohisce has been tpevohked in {VBd. thus , these broadcasting tities, toolbudtoag teretha pelttioner . are strli ftratsble for the Ttatotine taa, IL ttes PSHee prmascnted belore is ts Whelhiedt ot thal pelittones (os Liable for tranchise tax under section 117

DECISEON

G.t.A. CASE NU. S060 ~ & ~ of the ax code, for the pertods covering the January fye9ti to the fourth quarter of 1993.

it 1s MWperat tive at thie point la quete the dittetent provisions of ifaw that omnubers on the present Gahlroavarwy.

National tniternal Revenue GCoides “Sect tom Pir. $ ax Oe Pranvhrtses. miry Provls bas Of General mi Sptteudal { aw bu tise Gontiearvy motwithstandrig, thete Sidra lt ire bev der}, MuSe Sued etal wed dectest tar bespeere t bia aid franehi oes. Upun bie hass Pecedpis tio tean thre bus ttign a Guyver ed by fda bia phot t dang tiie franahioe, a lax iti Gtisusb bathe witht i hie sOileedddbe peegcar tbe dear wut (a> Cr ew der tr be wtb bp bad tess BEY was aieh Weds upp be bes Iwo (2%) per went Cis) ote te baspebOire ane ecg fe betedb agete soya tem ebtred Fadi bat crated OaGobaitay shai prone Uist US} foea ound « tu” Chit oobi Prato bees tive C65) prem uent i fre W“iahtbed sive df fate U face rebore wihtin, and pay the tax cue therm tt i tie: Lom hs S buiei of internat Hevenue at hots chard y Huthorrecd peprasembakl dues iui aveardahug with the Provisions wl Section teh at tibia wocheber, cadsth thee reer tabby stick df dees libs pee b too oathiet dy thie tubeaw al toterhal Hovehue , airy provioten ui any watt bay baw to the ounda ary bobvtlits tah trea.” CAS wtenibeec By tote. fet PLO. ff GOA “seottan 6. Ald franchises, Grahiea, cert tg ltuenses, permits, trorws or authority other reaeig

TiGgates

oner ate

Cat

VEC ISION

G.t.A. CASE NU. 5060 ~ to- .

television broadcasting systems shall terminate on December gt, test.

ihereafter, itrespeactive of any tranohise, grant, ficense , pertiit, certificate or ot ties Pores ol @titderr vty to operate granted try weehy bl daw, aijeiay Ot pepo, hho tdebda asa treebeviuteam stabldban shalt fre author tl ceed to viprerd abe wel Etresta tlie authority vt Live teeth ed od Commun baal toms haved the weer ular y art Pibed da Worhs ca fiit Conmida b aoa tt cities oi tire da Sus cessor s wha have Chie f vegtil anid autbhorably blo asst te {ibaa db tec Jodi Cdteo Pt etptbeth fos, OW aie ts oF ot dvery Wiber added. at padsstot bb eb tecy brodubeoaud tir os VW desttiss. : Pow tcded frhaer eee, that eaniy oak lbat wert uy Whaat een l wel ide, a gece (ag ced deer atop ehastart disrerch aGulbbor ed tes bay be appeated finatiy tea the OTPtGe of ihe frustdenmt whtthdu fifteew «days from the dale Chie asain dette fe Peet ved dy the partly th otiplertact bias deathh & freaed Lhe weGas iia tas pass ‘goon an analoyous CoNnbp aver sy ti ihe oase eat bea Heptbieo Brovadeact tiny mYyYodem, ae Va. Camis sb poner od foternat Revenue, GtA Case No. dogo, July @, I4Hs. where tt was trubed thad ttre abopemuated blade. beef ty A termtbhaied ad @xisting franchise toy jadio ath tLeleviston broadcasting and that tire Pheoete Se bibctrerd tiherpeatler by Che NHattonead Tebecotdsntite cat tus Commpss tan waist fok dave the ebttect of restoring the previous Tranchise ind we quote, thus: “Respondent ab aptldnerta td Chaat Che cttitdrer aly ut Ptucitse t Sothern ivy titre food ved Camm boa l bors eared tlie coeserd ce bad y of Pibbd te Worhs ahd Cabbiua beat tons ss decta hed does Goris bedbeov ect as fratvGbt Ge dues wit beobeb waked A Pioeise a theese and A fPanchise, ad tiadtohlise, this Cain t Cahhol see two sides of a Colm at a tite. bhete fas to be a UdwarGat tun bite to this eflect, A franchise rs a vVesled br taplit

Dt Cision

C.YLA. GASE NO. S060 o J ts a mere personal privilege and is revocable. in a tranohise, the rights, privileges and obligations of both the cantraating parties (the franohtise hotder and the state) are well defined and serves as the Buntradce between tivein. sueh onatiers Litt extent of operation, area of Pf &ssprosey the bb bet y Prabeohige tak to be pata to titer abate, shed LaA ee Gtk d don preivebages aie peed bed, thie iG vero uated ¢iebt daa wa lalet abl titwed by Court Ot Alsprea be phe btiee Gained topeb ad based, th Go bate triecnat Uevenbue vs. Hapubliac brGadcasting byslem, ered Court of lax Appeals, Aww. nH. SP Ne $2KHGT, sep 9, 1994, when th ceutlareri titis "Wes cbega et es wild Like Prndidgs ty the Cwboporiebeda l te tes tbbiat Pld, Fea ok bormtoated add @xX bok tread Peano tues Pees bureb biaey thud ud ite Presta t bates AS Of Lbeteortubbeer de a | boedd ane that ttre PP ahoittae ab Pers prctietet til Het os WAS em revived ata it ape bad ft taxz feed (oN eos totical fiahetilow Giaitesd tia | ried Heo fit tica Ott bb uate ead, bse Verb ed bohitey 4 oad ter € ft econ bial Pen pokde tid Webs co Siro dad se baidd bres tiabie baad tiahohise Lad cen Poort i ives llitad syed fourth Q(diar tet e Ob bitty Por Ube Pecdipeh tlradt ad threat ( ties Poespoticleml Haye coated fp thefered tor opubia te by Vad tue Of adwitniothat twee liGenGes and perint ls Ves er PObedlis Der abs ims lett ani dy drareaqgards the Srayntb tacit distdaect pan pelween a lagpiatative Viragh bivw wetied Pieenses / pert ts Posted by ah acti nbs trative agenouy, Suet a» the Nato burtriad tebe Oerttatidli teat testis orth GS bay CNbind. pris, as GOrpeat hy proba tert ett ly the Pers prcetheder ged wba, ah Ct atredi bse tos ri Porcine oo Prdva desde amber diy the SGvebetrynly bo ahead more fead babes ba cka cube: cto dk asi autho, which they ooiba Teen) HO wrt het tide crag Piven V bets Ss verl tbat power, Fa] praiviteqe whl Glitid trot Fer Prow T tres Soverea pan powell od t ties slate et Qa! htnedid a byt aeraste ob the OWRD Pay praweb al the slate, subset ing tt a per sath or Corporat ron by gbhant from the state.’ Cil¢ Words ahd Phrases 4/1, 462, dou) the ef oat iG. , eiber

EG L& ION

G.1.A. GAdSk NU. 5UeO A “trcensee”™ on the other hand, uoanHrersS no right on estate nor vested interest, har does 1t «6Gonstitutle a binding conteact between the patties, bout peo o's @ Were leave Lo he enyoyed as mattler of Pichu byeice ad the wil tod Che par ty gears bb, it os ve day gedoae @ woOnbLPaGL between Cie slate abe Lhe Liv@eEhowers, frig tu a were Jourd ote trad peedmtd. tia tteer tranoier able mee vedebple be Cah Waof cfs atid Phi aSes pioty, beady.

CeuseWyuei lai y Ptr Ford borw dda Poartetb og aol the pespotdbent Cla Cleai Pty treeouines the late tatla:

Heapotiient ai gament titeat the atibhoe ply oy Porth e Pisis heed hoy t dice Bead a vil Cour cak boli stv t lies Heerelary wt Pohid ba Wlab hos catia Whine barat b batts wideout fat bie cts bibetterd at Pi adhe bet aber thot dito bed weiter. by LbPoenioe (oS ad Lieetice attief cb Pa adich toe, a Pranoh ise ttitis ead Cordattaved Seg two sides of a Guin af io btite fiere (hess TO fre A ubemaraeatl pow bite co this ed fet if Piatt oe bos a Vieestled y begtat proottcbhed vy 1 ites wertho Eb bat tot whet de aA Jbuewges teat fied treed Sotrad ph ivi beae aad tx berwousabe ber.

(dual Stuoth., pep too In Lheet odbepint Gb the ulopes&etd appellate rababag of the Court ot Mbyte bs tts torethb Lob ab bets pe fava of the Pel el tartiese Frees tibet toad iheoiwee Nae, few torinthatect alt existing fedevistanm and toeavbdbee fb cehrerhe bers as of Lheiember .

3i, Pages f Vibe ier bors bape crt bedded bt aitchebes: ob pelitruted ainchers tieputbd pa Al Mims has aad fa wets bbe baathoed Soestgy those whose ex bo letod tide bry Vib bie of gata | aw. it Was onby Gh haved o, byyo threat pelrlraher Was again

DECISION

C.Y.A. GCASE NO. 5060 granted ai new franchise under Hepubltc Act Nos. /966. so durainy the pertods cGovered by the claim for refund, trom the Januar y ly to the fodrdh qtarter uot 1993, pelitioner WAS al bowed CG operate by virtie of a lieense beoued lt a warty least tay the National fe lecumliin toa bl teins (outa doo G btsia. Mol fiavithty earxtpsted under a PP athebei se: alt baad PA bCE Prete batt Bebdtionwer cauwld nat be tae fiebtie Pa pay Phe tai wthehtoe tas dader Gechrounm bie of the tax touche, Aftlet a oaierid stiniy of the wvlileted pouocoenbed by the pela blratwer les pre yise: tdi amoutt cba tited, this tote tl @xuobuderad Suva iad ud thre ea Ls Werte dL feted hy thie pet rt tories pot Lyn Pea@ooahs: fisbhiee dy pou cette Vg b bets ana petrl tonearm s Prob dine be bined iid Get Lata anbodiebs tae its ordlythal Vi abin fu pefttnd wtth thiss tsiti eeaeu ud fatertial Revenue.

hits pel et duge boa review Was (ited Ot Jaitary tb, 1994. live ihadbe od Feb voep te Crubetrab we tl wtltt tiave the effect Oo eacludtiay the Parra secend and third yttar ters ot Psese dd otde thre dPsticd ooOhpuitbati ion of the: Amount lo be Pefurded boecatise the daden of paymeht wi the taxes due Tol these ltdr tern cerlaintiy tai Gibbs tebe ties Lwoe Year IFesSeriplive meee PO pe ov dt abercd Ubitded See tliron 250 owl the bax } j Gode, wWhbub wtear ty ye overthess “obkO. 240. Recovery of t4%*% erroneoctusty or thlegaltiy cottlected. Mo sult or

NEG ISEON

G.t.A. CASE NO. 5060 ~ 10 ~ preceeding shal! be maintatned to any Court for the recovery of any National Internal Hevenue tax hereafter alleged to have been erroneously or tiltegqally assessed or collected, or of aty penalty cotatned to have heen collected without authority, or oof any sun abbeqed to hdve been exXCeSs lve on Vii any Mabe’ wrongrudbdy cobbleatled, ualid oa ba dab bas Periand or orede|d ha S Jreretge ith dy bidet wtih ihe CoMmiias tone ut Pirbetiieat Hevenuie fseil guad Garé ol prweeed tang hay fee wariliadred velave Clieei cad fio pttoth tax, petiabty, code Ss bin hia beeen fea til Gitiderd protest or gui eos baa ayy Loadiete, Hees soataada stitd wi procewudrnag shea bd bees beeraptade caf beth trie ex prbt ab torts ot two (24 Yuars Prom tte ta de of praymait of the tae urd petattiy f crgpad ihbeess ul ah \ Super vat fan Catioe Chat may ab tee ab let pratyiien ts Pru w i bear, friaWervere , Tbe bees Co tsditha (tr sb cotter may , evel wilhowl oa whttblern cGiatin thetiutiore, Pelt or Opedsitl any tex, witete ete Cathet face of the petut si peed wi)edoh paying tl * Wad ts mathe. wihih payment caps pre art & forat by bas trig weee frect Sprranewdo bly poacat ¢ Cisterrta deb beach “las i tae Spe eme Cota t fhiass teasdes thei bee tee dpobe Gbheat th the ease wi Lote tb perined tt Perterr ich l Hevetiiue ve. Victorias Midd ing teoingeaay , fis, eitnad fiid trata t ud bax Appeals, #22 SUHA Ie whe fb tabbed:

bin fictive PF epriktdotliy fiss did Ctra ete oda tia fol pefumd with (the tabead ul thternal Mevetile aiid bikie Subsequent appeab to Lin Uertb bt Ob bas Apprad bis wip t re Pi bes ve b bbe dn lie (wor Yerat Per teed YP Gwe Weed tire GCObtectiounr Lakes C thie bos theres debt aeepo tlie: tba bin, isyed Lites fowre booed of two Yeais bis ia focrti ld boo ccrdesd, Chie sthi tush feb cresar ected dt tray Hatics t bbe shar ted bir the wolf oad Vict Mpoprerel Poss foe bob eo the itd wth td dhe: UWor- Yeadi pres tud without await itigh Uli cheuto tol Gh the Gobtbeatui We have alaw eas dteebioah Ubie atiodnd Ccoarphesponme tag Lo the fuourdh uar ter of Pues Pecattse steh ah amount was not ine taudued Ph bbs UPrtyttal Ghatm tor reaftind bited with the

DECISION

G.'. A. CASE NO. 5060 Bureau of internal Hevenue. It was only th its amended petition filed with {his Court, thal petitioner decided to thetucde this particular qtlarter tu othe hope that at will Wer tt vob tdei at torn it aud fread dears bow, Untotr btinatedy, the puoowds ton poured Gi Seaeblion 230 of Cle Tax Garde (oitpt a; wubb aiyalusi i tie play of i hie pet tt bpotied . Kore oe Oe es ee oo GS ait thas a es (rachis expless | y declares ifhat a wet a bette bea tht boi barf itived 1S a pres requisite befote ais Court aGklivds Cah be Ppesorted to by the petitioner. Phe Fab buia te ful edb a bgt ie l was best eapiessed by Vive Abpor erttied focataa t thi like case of Sant rage id Leb hte: pss WG i dae teasd tas deed wi taternual Hevenue, GF vied hats whert $b thee fared i drign s “dtie law cbedar ly GP tptbbabisss that ab beta Jock yo ines thee bax tire ott ieth tte t siittet hl ao clare Gant pecdapttech bigs bot fb cetisee bee teeg Cer tbe out ta, t ives Vadeg ce polo whicebe doy re, pita, ta addenda fdas soos dt bers baat vate orepspioot Large td by bar artat d dees t titre at testi uf sdb tha be ob Pb tasers y aud oeerooteb to mobity thie: Goweb abet ttt such tLaaes fred Jicrtet piles lobia, and Che hpotiee sthuwdich thet be borne ii Woda Fay ei bitiatity Che tevetitte aval iatide: bat exprendd tage. | ( tver Pert (et cs bat ian Por tedtithad titted by the petitlironer tft the ollie of like Pesponitaint dated November wh, Ilys (Exthibit “hE Medes Heit pon omby of ttre per piles fe cone Jdahuary tsb) to the Cinthia quater oot [Sus. Pt oobbet thet fteds debe Cine Pote Ch cfuar beet ot boas thhete bs fhe peason why we tdrodded aise frie t ebes Live Baie in od Pinal

DEC ES FON

GL. A. GASE NO. 5060 —~ $2 computation. No evidence was presented to show that another claim for refund was Tilted by the petitioner to cover the last yquarter of 1993.

thi Cuugedusratn. the petilionreci ts stagbd @uitided to the amottnt wl FOP eyo US lo bd bp epreeenting payments of Tranchlioe (axes Madte chur itiqgng the bourth «uarter of tut to the thitd quarter of Ieies. Gomputed as follows: Rehab baited iettytsbuaal Webi yp d ad 4H GAH TEM Vayi bo Deb, tte ted fig cab uyd. au F io bid.a f 1b, 2b2 bade (Sh Qua iE lyse totelis { tio gsi, dda 1 tis bio wua ee EHD QUARILE dogs oF) beast t-d Hd fou, ded ud ao Uy Fy ee ae Br SHU UUAKTEH iyol Ge bow idb Usi. at bo otolas b, SUG bse HI di WUAR TER due. Wo ea, a ) i Odd data i iP dby seed 1S diiabdik iay \ ‘ ia 4 i bE bah vee. cu SH UUEN bb bys I, dei, 4 j tcdtydoreia st su li, b98, SHO LoF SHY GUABECH ivi br, Fré, t RS g,249,204. bouto wi fu chavo be Pao Wid See Gy Fetes cas ed PIOE yd tal oy Whi Hi kf Oak | Vii vob ew ol tive foregqorny. bespondent COWmMiss bouce wb Piatt tice l Hervasaithe ba hebeby Qi det eal lo refurna bat faves wef t ties pres h bd beaters bliss cpio ede t wot PITOL, oye oS too, tepresenting erroneous y paied Franchise tex Guvert Pip ttre por toads Prom the fourth sua@eler of QI to the thie Guar ter ur bys Slr uhbbitib

ALO

adiy i.

Abo

DECHESTON

Gol A. CASE NO. bDOBU

| CONCUR:

“2. CQL

ERNESTO DL ACUSTA

Presiding dudge tr é #€ @ £9 Bas ee € § tata i Hhotoabiy were bad btici t brit iberts boo beady Whed Ss beached arte die aio ad bat ivsia st dhe thie Wetibeed Gt tiie tere boot fax Appeais ith avert afatiot: wit tin see babu da. St taude: va td Of Ute Lois h tbat tion

C6 @

i) anh, HAP oOo Pi seo bebb dyed; ofthe

RRA