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    Maceda vs. Macaraig Digest

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    Elaine Honrade
    1. Ernesto Maceda questions the legality of NPC's indirect tax exemption based on the history of statutes granting tax exemptions to NPC. 2. The court ruled that NPC must remain tax exempt in order to enable it to pay its large domestic and foreign debts totaling over $16 billion. 3. The issue of who would pay taxes is now moot since an executive order eliminated ad valorem tax on oil bunkers.

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    Maceda vs. Macaraig Digest

    Uploaded by

    Elaine Honrade
    172 views2 pages
    1. Ernesto Maceda questions the legality of NPC's indirect tax exemption based on the history of statutes granting tax exemptions to NPC. 2. The court ruled that NPC must remain tax exempt in order to enable it to pay its large domestic and foreign debts totaling over $16 billion. 3. The issue of who would pay taxes is now moot since an executive order eliminated ad valorem tax on oil bunkers.

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    3. Maceda vs. Macaraig Digest

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    3. Maceda vs. Macaraig Digest

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    1. Ernesto Maceda questions the legality of NPC's indirect tax exemption based on the history of statutes granting tax exemptions to NPC. 2. The court ruled that NPC must remain tax exempt in order to enable it to pay its large domestic and foreign debts totaling over $16 billion. 3. The issue of who would pay taxes is now moot since an executive order eliminated ad valorem tax on oil bunkers.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    172 views2 pages

    Maceda vs. Macaraig Digest

    Uploaded by

    Elaine Honrade
    1. Ernesto Maceda questions the legality of NPC's indirect tax exemption based on the history of statutes granting tax exemptions to NPC. 2. The court ruled that NPC must remain tax exempt in order to enable it to pay its large domestic and foreign debts totaling over $16 billion. 3. The issue of who would pay taxes is now moot since an executive order eliminated ad valorem tax on oil bunkers.

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    © All Rights Reserved
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    of 2

    ERNESTO M. MACEDA vs. HON. CATALINO imports. On July 30, 1977, P.D.

    1177 was issued as it was to


    MACARAIG, JR. and HON. VICENTE JAYME, ETC., ET formulate and implement a National Budget that is an
    AL. instrument of national development. Further, it decreed that all
    units of government, including government-owned or
    Ernesto Maceda questions the legality of NPC's indirect controlled corporations, shall pay income taxes, customs
    tax exemption. On November 3, 1936, Commonwealth Act No. duties and other taxes and fees are imposed under revenues
    120 was enacted creating the National Power Corporation, a laws. On July 11, 1984, P.D. No. 1931 was issued to expressly
    public corporation. The main source of funds for the NPC was repeal the grant of tax privileges to any government-owned or
    the flotation of bonds in the capital markets and these bonds controlled corporation and all other units of government. Sec
    shall be exempt from the payment of all taxes by the 2 of the decree provides that The President of the Philippines
    Commonwealth of the Philippines. and/or the Minister of Finance, upon the recommendation of
    the Fiscal Incentives Review Board created under Presidential
    On June 24, 1938, C.A. No. 344 was enacted increasing to Decree No. 776, is empowered to restore, partially or totally,
    P550,000.00 the funds of the NPC. The provision on tax the exemptions withdrawn.
    exemption in relation to bonds was neither amended nor
    deleted. On June 4, 1949, Republic Act No. 357 was enacted Petitioner contends that P.D. No. 938 repealed the indirect tax
    authorizing the President of the Philippines to guarantee all NPC exemption of NPC.
    loans. Any such loan or loans shall be exempt from taxes. R.A.
    No. 358 was enacted authorizing the NPC, to incur other types of Issues:
    indebtedness, as to taxes, the NPC was still excempt. On June
    2, 1954, R.A. No. 987 was enacted specifically to withdraw Whether or not the NPC is tax exempt based on the history
    NPC's tax exemption for real estate taxes. On June 18, 1960, of statutes granting it tax exempt privileges.
    R.A. No 2641 was enacted converting the NPC from a public
    corporation into a stock corporation. No tax exemption was If there are taxes to be paid, who shall pay for the taxes?
    incorporated in said Act. On September 10, 1971, R.A. No. 6395
    revised the charter of the NPC. Section 4 of C.A. No. 120, was Ruling:
    renumbered as Section 8, which provides that ,the bonds issued
    and loans, credits, indebtedness shall be exempt from the The court ruled that the NPC must be tax excempt based
    payment of all taxes. Section 13, R.A. No. 6395, declares the on the history of statutes granting it the privilege of tax
    non-profit character of NPC and excempts it from payment of excemption. One common theme in all these laws is that the NPC
    all taxes. On January 22, 1974, P.D. No. 380 was issued. The must be enable to pay its indebtedness which, as of P.D. No. 938,
    decree provided that the NPC shall be exempt from all direct and was P12 Billion in total domestic indebtedness, at any one time,
    indirect taxes. On May 27, 1976 P.D. No. 938 was issued. and U$4 Billion in total foreign loans at any one time. The NPC
    must be and has to be exempt from all forms of taxes if this goal is
    On January 30, 1976, P.D. No. 882 was issued to be achieved.
    withdrawing the tax exemption of NPC with regard to
    The NPC tax privileges withdrawn by Section 1. P.D. No. 1931,
    were the same NPC tax exemption privileges withdrawn by
    Section 23, P.D. No. 1177. Under P.D. No. 1931, the NPC may ask
    for a total restoration of its tax exemption privileges, which, it did,
    and the same were granted under FIRB Resolutions Nos. 10-85
    and 1-86 as approved by the Minister of Finance.

    The question on who will pay for the taxes is now moot and
    academic when E.O 195 was issued, by virtue of which, ad
    valorem tax on oil bunkers was reduced to zero.

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