CTA Case No. 1625 (Decision)

C'lb:PUIH.I.C OJ' THE PBILil'P'I N .< _. COURfl' f)F 'llAX A'P�PE.41~ QUEZON CiTY 0' nfet t. -�-,;;;,a-- - - -X li �.c: . 1 0 ~ . �r_ is 1a a a p .r.:J. . from d c s 1on 0 r~ - c O"'ld 11 ,� ton.. r () ,- 1 tr r ' n ~ v s .. r. P"' ti on~r h ou~.1� r 16 797C . iJ C� '1tac , r � pre n t � � t i; (;!'ld 2_~ sur eh I' ' - or tl.{J :fr>'tJNJ 1957 a d 195 � r.! ') . rs on th t ~:.. i ljt: ' )~) 1i51' thP or h il' u... iza 0'1 , en:� h~ ,... fe r h :'lrt, ~n t rn:~ f t,l { r th �~ilL� 1r t � s ~ j r ct nr � � t� t h 6 t.r�i ~d t .. or .i.. s r:"c"''"' n� c~ ~ S'":> t1 .".' ' � t ~ O(l<t' �1 lC C!t �� t1o �r d :1 ;'J f 11':., 5t ( ntl": r ~ l i t(J not~! t . a :r e; �G :1 t 1tL 'hP ':1v (' l' n.::.~ n 'hr.> ot t .e on ..o 't:" ... bn r .6 , 1< 57 r -~~orrU n . t�. s i rc 0. lo ~ d <ill H ......

pro 1s1.on xemptin th ao fr<'f 11 . ll dir ct oo � ��o ~ r e &Xi s~ in he ent of July 22 , 195'1 ~ e!t ra oo . ~h .re i't r, Did Dull. t1 o. 1 was 1$ d by JHQ with tb rollowtng :rovi :tont All propos ls aust take into necount thi.t �lnc building ... long to an ot rnat1onal organ .z; tion :lth d!plom~t1c ~ t " and i� th<;:rerore, X pt front the ym~nt of all fees t 11~ .ns( ,, anti 1: x s both loc l . and atlonal . fb.es a nd licens s ar� ill oon �eetton vi th eonstrtu:tion �r~ts and t x s and dnti .r eortn os connr>ch:d ith th o4 1=.-por atl bu!ld1 np. m t~r~ .al~. Yo\1.r p!"opcsu:'!l, therefor ,. must tokE> this int ae- eount ... n � ebot.,lrl ot inc, nfl ~ t ('nl! far such taxes, li ~os~s, and other pa:mPnts to r;o,r-n .ent n,Pnc s. On ? br or:; 10, 195 tht- con truct:fon e rltr .ct h' eh 1s th sub'1 et of the: e ~ ~aS~tumt n ''u stion �\9 ~'Xe(:tl.l e<d by an be t'lr�~ n the rmn nl! p ! tionar e.r Clr , "'t1Z d !"ld xist:f n;~ b7 v rtn~ f'l! th~ law tt E> Phi 1 ~�\in.-s. � The t1 ,rnl� t � d <"ol"'tt.r . t r:r1 p ~tE?d tho p toe resell d In eonfl ction ,.d th th aro e.. id co tract th~ �~ao c~rt;!tie that ... this is to eert!f7 that h~ ~io:r d l a~al th Orge. 1.s~ ion ond the hOV~l""ntnfl> . t of the R~p blle of the l'llil!.pp1n $ "nt r 6 Jto an ag:r e.. nt r rardin tl P conctruot on t:tf " builtj .ng to tiCC()f'JCIOtla the ,orlu H a 1 b Orgt.t"d.~ tion an<l oth~ � 1Jnitod ::vtion ofric s .Ht� tio .f'O in . a n1la., .tt '1 P:r . . . nt s1 cncd on ~6 :;cv~mb~r 1957. -

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D;CISION .. CT , C' SB o. 162; , Cool , Vol . II , P� 1 16 , 1tin ~ o v ll.y n ~ . t �r o p ny v. ~oot � 1. ) r� n old Jl tnat t � 1 is ot b bur n or t~ e c nt:t� 1otor � tax .t.1 ir o 0 ful o . the C'"' n (11" ...;(, i11pyJ'.n~ 'H'! tyl Co .. , Inc~ v . Co d"" 1one o I 1 r nal ! v n n Court o to 1 ! ld l bl o.r a los t x es n l ncr of th . on l ow r Co o � tion, t �n Gov r en , w,e,i o 1� r1 & hr :isiot1 of� ~t id c e l t Yl s 1 t 1a 121

-r�<.x�� o ... c.. ' c &!!~ [' .. 1 25 l~ ..... ��" d r th r hat in th lj h or .... t th 1 f tha t 11 r m~ n n on. th P 1 onal PotJ Co p ny (') on .rt e s � 1t or r he th1 t ., sar d i~ no h pr nt . - Th. C ticn shall bu~ten I Stat " ay f:ln_'l ny 41!11.- 1 y, 0 f r h b rd n f thdt ;t l' r 1~ but al ft' th ul ..i t br n t ht t ,y rtl!tf p s � OI to hink i ~g !' 0 uly 22 t 1 ;I ;il urport to n they u 0 an 1 1J" ~ X :. . tl "'; t:ton 12 :f t ,r f .J,�ly 22 , 1. "}1' 1d fur ov , br n h our po t . S 1 ct n pr ov1 th t - 122

1v � 1'' for goin pro i ion cl ly l" v. th 0 the Ul' () tl' ~al axe r- c 8 a y t thP. tax 1 y 1h 1 r, no c nd t no d t 1 COM ct1on th t SAet:lo 12 for,. said o� �h 1 p ik . ~ 1VP.. f - t!V1.on y . ipul t fi:X nl nr � 1 0 to wni h this ve:r d i t ~xem tion fr 11 ir Q 1 di .. ec 1o 11 . It cruld th.ll tt uly 22 1 51 n ' r .� 1957 ed 11 v � th wo rr xes t i 1nt!ir@'ctl ys -ca ' tbi burd n n1ti t~lN fall on the xpr . t j nt t 1 () ny ords, iUt in . ' phr m p u ~X r 1 et anc.1 ir � A o no h k h t o r !nt rp t ti n r h a x pt!.on in on s 1"cn vio �te th r le n tr1 on t uot �h h or t �_r/_.�~w : ' �. ''�. � .

.� 1 5 11 io p.r 0 to c rr ' 0� h v . c t y- 5. ) in lli nc: 1 t underlying c n o 1 in ... 1 oct in l o tri t tr c - '8 t c1 h r 1 r 1 ru no 1� 1 0 cc b. s 0 (Ill i tlt co ;. re t l fl 1 .t.1 t 1 t ' 1i t0 � 1 y, 1t ' n< u c io w1 h ' l._ be con- 10 � h ie X ion,., lly tr -~

12 poo U . fi! th t the vi G n r �cord b c:oot otor� t X 8 QO 1� count con . a ri � ln up rt r is r ... , fr . ,.,n on r n Bl ,. '� vert d to furth r b on rmi ' r t ~1al � s~en nin r rth r ea1.d ' on, will fi hat it 1 o 1 to t o r t. s 1 1 1 tin, w ha th c r if c n t h �mo o tn fe that h PJ" p ct1 ontractors w~ dvi snd to tak 1. to ce ount th t th �o a r . l 1 1r ct xe � �� f no :u n vera !ty of ':1 r�t r1 t1o whieb f n ecrr~bo tion fro th fact t he � iH(\ 1n .rt�f.!ct cbta 1 ed n. op nion f ,.. O!JP. of' In .1'0 1 ' v hol 1 h h "" l con racto � :X n jndir c t X "Clu 1 h th \'JHO. ' Of' C) 11 he tht' reeor of tn .re . .r Int rnal �' .v .nne sho'W th � t t :1.e only pb.int the B\'u�e u r :!<tef' dt .r1 f\ n t1e tion of th s e s ~ tin q ~~tio s e n.l c h ity f th . x ~ ~t1on t t eo- tr ct:ion o ntract ~ � ,~ n 11on r n � th r/H '"' . Respond~ t ln~tly ur e that th~ 1 qu ti is xolu 1 � . ly f r .h � o a o nnot b xt 0t t1t1on p rson 1 128

13 tur � It shoul h r cal1 tha th ,x mpt n 11. 1r .ct 1 dir'"' � ta.a. .., .0 Ph 1 ll th 957 0 r to o n t~ con tru t1on in � Th E:Xe tio i he. t U$ atta h 4 . tr. 1. co t et nd 1 n t ~s per or. l tc ' ' :r.n.... "�t n,y ts t1 th i t) i di \.': tt h n :i.t dvi t1t1onr,r 0 ta tt1ng it riee1 :1 \ 1 o c n$1 .r tio n u not h t1t1 n r th t wf" 8 it nc 1 th t 1 �. . t thr. {! ;['l) .d d('cjaion ! h r�by l v :r d. wi tho t 1�rcnounce nt as to c � ao � \ 126