CTA Case No. 2183 (Decision)

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CISicrr - C~ CA NC . 2183 13 Vi w d from th for o1ng c_reu~st nc s, w li V� th h n o gr p s d .public Act �o . 5431 m o in incom t x on corpor t1o w~ d or controlle y th Gover ~ nt , it 1 not 1. t .� to includ h r; tior: 1 Po r Co o tio t p blic of t. Philip in w ul. r- ne ing on it co 1 nt ot o r it any r it c1 . o ol tic 1 u visions t nt~rfPr ~ith th. �1'" r no by c r oration f i obli at o s u , r th Lo n It s s 11k ly for t bit o nc". or po11 tical rf ri t1 io r ~ h~ p rro ne of ~t obl1ga ion n� 1 th ~ m th llo r ~s t 1 t f r ith t with th co Q .it nt wb rras o th R ublic of t h p 111 To b t to rP pond.nt� con~ n- tion h t R ~ ublic ct !~o . ''+31 h r p al d R - u lie c .'o. 9 7, w 1 r t d t1on t t1t1o ~ r, ul oun o n 1 nc to nt by th p th h111pp w ic do not thin Co r- s in c~ 1 et-d th r alln tatut � c"' :. o . 35�7, tit o~ r wa ly uth riz to e :. tr ct 1<: �n tth t . nk. r nt thi thor y, p 1tio.n r f 111eh as 230

D .CISION ... CTA C&SF NO . 21 83 h lo for th _ lourtt Po� r P oj ct, d. 'Ld April ;, 1967, f.or th um or '12, 00 , ooo 1abl i.n 16 y ar at 6~ 1nt!'r st p r annum .. (S~e � 2..01 if. 2.0 , N"~h . A, P� 50, CTA r ~c. ) To cilttatce th~ aym � t or th loan , p titlon r wa g.rante X tiol'l fr m 11 tax under Ppt blio Act ~fo . )58 . ..ubs4!'qu ntlYt ublio 'et :~o , �ij 7 relt ratr.t titioner's xempt1on from ta:Ki s, xe~pt r~al property tax .... �To fneili tat(;: pa., "nt or 1ts n- � n on. rPs pas 5lt 1 on Jun 7, 196 , 1 1 w w 11 o � re of t prr:vious nactrn nt uthor- iaing pnt1 t1on~r to contract lotms ant1 ., xemnti ~ t t fro th pa,ym n or all tax to .n !ll 1 t to - 1 1 � 0 ou lYt Co r s rr liz d th t wi out thi x .mpt1en priv 1� , " 1tion r ul find d1..f iculty m- ting 1. t lo n obligat1 n and th Gov~rnm nt , reprrs �nted by t � 0r~sid nt hi s lf a th pr1no1 � �1 obligor 1 would finally b call d u on t.o n~ r for 1 t . In gr nting ch tax tion, h <;)t\p~ m. Court h ld that th Gcvt~rr-..~ent wa1 v~d t r .. ght to coll et t �$ fr ) ti tiono.r +.o fae111 tatf"C liquidation or 1ts l1ob~ 11- ti(lis. T. rJ R ryublie o to 0~ th . 2 31

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