The City of Manila v. Coca Cola Bottlers Philippines, Inc. (2009)

THE CITY OF MANILA, LIBERTY M. TOLEDO, in her capacity as THE TREASURER OF MANILA and JOSEPH SANTIAGO, in his capacity as the CHIEF OF THE LICENSE DIVISION OF CITY OF MANILA vs. COCA-COLA BOTTLERS PHILIPPINES, INC.

G.R. No. 181845, AUGUST 4, 2009        

FACTS:

Respondent paid the local business tax only as a manufacturers as it was expressly exempted from the business tax under a different section and which applied to businesses subject to excise, VAT or percentage tax under the Tax Code. The City of Manila subsequently amended the ordinance by deleting the provision exempting businesses under the latter section if they have already paid taxes under a different section in the ordinance. This amending ordinance was later declared by the Supreme Court null and void. Respondent then filed a protest on the ground of double taxation. RTC decided in favor of Respondent and the decision was received by Petitioner on April 20, 2007. On May 4, 2007, Petitioner filed with the CTA  a Motion for Extension of Time to File Petition for Review asking for a 15-day extension or until May 20, 2007 within which to file its Petition. A second Motion for Extension was filed on May 18, 2007, this time asking for a 10-day extension to file the Petition. Petitioner finally filed the Petition on May 30, 2007 even if the CTA had earlier issued a resolution dismissing the case for failure to timely file the Petition. 

ISSUES:

Does the enforcement of the latter section of the tax ordinance constitute double taxation?

HELD:

YES. There is indeed double taxation if respondent is subjected to the taxes under both Sections 14 and 21 of the tax ordinance since these are being imposed: 

(1) on the same subject matter — the privilege of doing business in the City of Manila; 

(2) for the same purpose — to make persons conducting business within the City of Manila contribute to city revenues; 

(3) by the same taxing authority — petitioner City of Manila; 

(4) within the same taxing jurisdiction — within the territorial jurisdiction of the City of Manila; 

(5) for the same taxing periods — per calendar year; and (6) of the same kind or character — a local business tax imposed on gross sales or receipts of the business.