TAGUIG CITY TREASURER and THE CITY GOVERNMENT OF TAGUIG CITY v. CEDARCREST CONDOMINIUM CORPORATION (formerly AC-316)

REPUBLIC OF THE PHILIPPINES Court of Tax Appeals QUEZON CITY En Bane TAGUIG CITY TREASURER AND CTA EB NO. 3061 THE CITY GOVERNMENT OF (RTC SCA Case No. 291) TAGUIG CITY, Present: Petitioners, RINGPIS-LIBAN, PJ, BACORRO-VILLENA, -versus- MODESTO-SAN PEDRO, REYES-FAJARDO, CUI-DAVID, FERRER-FLORES, and ANGELES,JJ CEDARCREST CONDOMINIUM Promulgated: CORPORATION, Respondent. 'JUL 28 2026 X ---------------------------------------------------------------------------------------- X RESOLUTION MODESTO-SAN PEDRO, J.: For the Court's resolution is petitioners' Motion for Reconsideration (On the Honorable Court 's Decision dated 31 March 2026), filed via registered mail on April 27, 2026, with respondent's Comment/Opposition thereto, filed via registered mail on May 7, 2026, assailing this Court's March 31, 2026 Decision. Petitioners argue that respondent is engaged in profit-making activities, rendering it liable for local business tax ("LBT"), claiming that ( 1) respondent recorded the fees it collected from its members as "Revenue;" (2) since respondent has an "excess of receipts over expenditures," it is realizing profit; (3) by paying income tax, respondent implicitly admits to conducting trade or business; and (4) respondent is a contractor, which the Taguig Revenue Code explicitly makes liable for LBT/

RESOUTIO'\ CTA �!3 No. 3061 (R rC SCA i\o. 291) Page2of3 Against these, respondent insists that it is a condominium corporation not engaged in any form of trade or business, meaning it is not liable for LBT. The motion lacks merit. First, the use of the term "revenue" does not magically turn the fees collected by respondent into profit. Such an argument implies that whether a condominium is or is not liable for LBT depends substantially on what term it uses in its records, more so than the nature of its activities. This does not seem to be based on the law or relevant jurisprudence. We thus reject the argument. Second, the idea that a condominium corporation is liable for LBT if it has an excess of receipts over expenditures is untenable. It implies that a condominium corporation is not liable for LBT if either (a) its expenditures exceed its receipts; or (b) its receipts and its expenditures are exactly equal. Both of these, however, are completely impractical. The condominium will be unable to persist under (a). Meanwhile, (b) is impossible to maintain as a condominium corporation cannot predict the future and exactly plan for all its receipts and expenditures. This argument fails as well. Third, while income tax is imposed on gross income derived from the conduct of trade or business, it is not the only form of income falling under income tax. Others, such as "Prizes and Winning" or "Rents," among others, also fall within the scope of income tax. The mere act of paying income tax consequently does not show that a condominium corporation is engaged in the conduct of trade or business. Petitioners' third argument fails. Finally, petitioners' fourth argument is based on the contention that respondent realizes profit and is thus engaged in the conduct of trade or business, so that it falls under the Taguig Revenue Code's definition of a contractor. As petitioners failed to prove that respondent is engaged in trade or business, the latter cannot be characterized as a contractor. The cited provision of the Taguig Revenue Code is thus inapplicable to respondent. Petitioners' motion thus fails to show that respondent is, in fact, liable for LBT. Our ruling stands. FOR THESE REASONS, petitioners' Motion for Reconsideration (On the Honorable Court's Decision dated 31 March 2026), filed via registered mail on April 27, 2026, is hereby DENIED for lack of merit...,-..--

RESOUTIO'i CT/\ /;B No_ 3061 (RTC SC\ l\o_ 291) Page3of3 SO ORDERED. /.I ,..,..... ;,....- ESTO-SAN PEDRO WE CONCUR: it.~''-- MA. BELEN M. RINGPIS-LIBAN Presiding Justice ";: I JEAN MAR~fIa-~e~J~ustIiceLLENA ~ ~F~-~~rk MARIAN IVYCF. REYiS--FA.J'ARDO Associate Justice -; : tCU,I-;~i1VID LANEE S. Associate Justice HENRY /Jt:.NGELES Associate Justice