Wednesday, February 08, 2012

Yamane v. BA Lepanto Condominium Corporation, 474 SCRA 258 (2005)

Facts: Petitioner City Treasurer of Makati holds respondent, in a Notice of Assessment, liable to pay the correct business taxes, fees and charges totaling to P1.6M in which the respondents protested contending that condominium does not fall under the definition of a business, thus, they are not liable for such taxes.

Issue: Whether or not the City Treasurer of Makati may collect business taxes on condominium corporations

Held: Petition denied. Accordingly, and with significant degree of comfort, we hold that condominium corporations are generally exempt from local business taxation under the LGC, irrespective of any local ordinance that seeks to declare otherwise.

The power of the local government units to impose taxes within its territorial jurisdiction derives from the Constitution itself, which recognizes the power of these units “to create its own sources of revenue and to levy taxes, fees, and charges subject to such guidelines and limitations as the Congress may provide, consistent with the basic policy of local autonomy.”

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