Beruflich Dokumente
Kultur Dokumente
The "in lieu of all taxes" provision in its franchise does not exempt As adverted to earlier, the right to exemption from local franchise tax must be
ABS-CBN from payment of local franchise tax. clearly established and cannot be made out of inference or implications but
must be laid beyond reasonable doubt. Verily, the uncertainty in the "in lieu of
The present controversy essentially boils down to a dispute between the all taxes" provision should be construed against ABS-CBN. ABS-CBN has
inherent taxing power of Congress and the delegated authority to tax of local the burden to prove that it is in fact covered by the exemption so claimed.
governments under the 1987 Constitution and effected under the LGC of ABS-CBN miserably failed in this regard.
1991. Petitioners argue that the "in lieu of all taxes" provision in ABS-CBN's
franchise does not expressly exempt it from payment of local franchise tax. ABS-CBN cites several cases to support its claim that that the "in lieu of all
They contend that a tax exemption cannot be created by mere implication taxes" clause includes exemption from all taxes. However, a review of the
and that one who claims tax exemptions must be able to justify his claim by case laws reveals that the grantees' respective franchises expressly exempt
clearest grant of organic law or statute. them from municipal and provincial taxes and ABS-CBN's franchise did not
embody an exemption similar to those cases. Too, the franchise failed to
specify the taxing authority from whose jurisdiction the taxing power is
withheld, whether municipal, provincial, or national. In fine, since ABS-CBN
failed to justify its claim for exemption from local franchise tax, by a grant
expressed in terms "too plain to be mistaken" its claim for exemption for local
franchise tax must fail.