CTA Case No. 2827 (Decision)

REPUBL IC OF THE PHILIPPIMEB COURT OF TAX APPEALS QUEZON CI TY BAGU I O COUNTRY CLUB CORPORATION, Pet.i tioner� ~ - ver� sus - C.T.A. CASE NO. 2827 THE COMMISSIONER OF INTERNAL REVENUE, >: - - - � - Respondent. - - - - �.... �-)[ DEC I s I 0 N This is an appeal from the decision of t he Commissioner� of Internal Revenue assessing and demanding payment of the sum of P368, 9 :34 . 59, consisting o fi>:ed ta>:es as alleged operator of mess hall, n:d: ai 1 liquor dealer, dealer fer-mented liquor� and operator� of bar �from the 2nd sem. of 1969 to .1.972, inclusive; _.. percentage ta>:es for the years 1969- 197 2 , as operator of mess hall, bar and lodging house, ocumentary ta>: on receipts of lodging house operator from 1969- 1972, and equi va 1ent amount for c ience stamp ta>: ~ twen t.y- five percent sur�charge and inter�est on fi>:ed and percentage taxes. On September 2 , 1974, petitioner through its auditors, filed a protest against the assessment.

DECISION CTA CASE NO. 2827 - 2- L�lhi.le nn �fnr� m,'=\1. dr.rt.i..'=\1 Comm is s .i. c>rtpr�� n �f I n t:. P I' Tl '"' 1 F\evenue ~ s!? r v .i . ce of t: hf? war� r�� ;:,rtt~; o �f di.!::. t:.ra.i.nt -"' nd le vy on on 17~ 1976 .i.nd.i.c-"'tes t:.."' :: l.i,"'hi.l.i.l.ipr::; r.md ~'~�"~r.:; t .':"lhPn hy pr~ t..i.t.i.r.:HH?I'- as the Commi. r.:. ~ .i. Dil P. I'. o �f Irtt:. P r�� n ;.,\1 ne '/ PilUF' ' !":, -final dec .i.sion. I t i s a llF~ qed t:.l�t."'l. !:lr,~c t..i. on .191.�-�� ?) o �f thP. Ta>: ('tc t t�lo. 6.1.10~ v et.oed by the F're s .i.r:l r nt.. o �f t .h e F'h.i.l.i.pp .i .rll?!:. on (.)uqust -1~ 1969 -"'lld I t i s �fur�� ther�� �'�' l l r'? qed t.h,'=\t. the ser��vice and �f ac i l.i. t.JPt:,> of pE>t:.i. t:..i r:>llPI'" e >: c 1 u s .i. v e l y memh p r�� �::: ~ t:.ltPir�� �f,"'m.i.liP. s artd Qltest.s . and not for- the public; that. pet.i t:.ioner- does not m."'t.i.nt. ;;dn ;:, lodqinq hou s P. tr-~>:."'ble under� Sect.i.nn 19.1 ~ and .it: s acti v ity of renting its cottages and rooms exclusively to its members. for nominal amounts to cover upkeep and maintenance. does not constitute a t.:n:i'='ble bus.i.ness subject t:o f.i.>:ed and per�centage ta::e~;. nnr� to c:loc:umentar� y ;::md sc:lenc:e stamp ta>:ea impn�;;pd on r �ece.i.pt.s issued by hotels. motels, n ?. st.llDt.l s es, lodq.i.nq houses ,:~nd n?sor� t .

DEC ISION CTA CAS E NO. 282 7 - 3- (.)t' T it ive to ,:--n�l �~.i. t t: t te <':t djud ic,;t t.J n n b y t:h P El upr�� e me CCJur � t . c:.~tse .i.n v n l v .i. rtq si m.i.l a r�� i ss t.\ e : '' Cn rnm .i. �:., s .i n r1t> r~. n �f In t P t' �n r:t 1 Go 1 f .. '"' n c1..... C: n u fl t: 1~ y ... C 1 Ll J1~ .. .. I n c � .~ e t:. � . ... a 1-. L . .J3 � H. ~ . . Nn_. L... ::- 411~ ~? 1. An App ea l t n t.he T t t r.t t t.he ,;tppc<-:t l E'd c.::'I:'R o �f Cn mm.i ssio r te t'- n �f Inc .~ r:-~ t. h ;~ s h F' P n d F? c .i t1e d h y t .t 1P !:1 t t p r �e nH? C n u r � t: .in f Avo r o �f r� pr.:-, por H i en t. r:umm i. !01:-. i on P r � n f In te r �n '"' 1 F:eve n ue n n I'! a y .1.�1. 1.9'?0. f"ltr:> prt� i t: i . c>n tH"ll"l t�q-, fnr� p IJ e; pt'- P.!"'.P nt s <'�' r 1 i. cl c> 11 t: i c: ;~ 1 q t t P"" t: .i. n r 1 : ~'J h '"' t. h P. r�� 1:. t 1P. pt�� r>�-~idr� rtti,"l vr. t:.u rrfPrrr-- d tc> t:. t�te e rtt. .i. r�� e r,;:.r;�c t ..lnn n,,.. mr.t'.. r. l y l.n t .lt e .i mpo ,; .i.t.J n n o �f' ? 1)~~ t '"" :: C'n q r �oss r� Pr.: r:?i p t:. s n f n p e t'� a to tr s cw r �t..�opt'� .i r. tnr �s n �f r�� f--:>r,::, !:At .1r�� a nt. s. r �e f n ?s ttm e rt t. s p i":l r � l n ,,.. "-� ~ b �':1 ,,.. !'l ,~, n d o t. t 1e r � e a t .i. r1g p 1 '" c r. s ~�J i ti.c: f �t .::tre m.""l:l. rt l .r.:t.l.ned w.it:. lt .i. n th e pt'� e rni e;;es cw compound o f a h D t e l~ mo t e l o r� ,,. P s t.ltou "'-F�~!:; � Pe �f F.? ,,. t:-�n c: e t.n t. t te M.:t n .i. 1. a � tnt:r:-~ 1 r::i�~~-:tF~ . t. t tG~r �P. f nt'P. � m.i qht:. h a v e b ee n �-; ' t �f f .i. c .i. '"' r1 t: t .n d i s p C' '5 e n �f t:. t 1i s p e t:. .i. 1:. .i. o n triF.' r� e .i. 1: n ot �f ot'" the pn!':'�.i. t:. 1 o n o �f t:. h E' CT (.) t:. t t ,;t t:. .~ c: h ie �f r.:->:-:r>c:t.l t:.lve lt .:ts n o pn ~�I E~ r- tn vet:.n par t:. o f a n i t e m i n a b i l l ; eith e r h e vct:.c.1es a n e n t.i. r��e sec:t.io n or� a ppr�ove s i t. but n ot a f rac tion thereof. H erei n pr i va t e res pond e nt~ MAn.ila IJo l f 8( Co u ntr�� y C l ub~ In c. i <::. non -��s t .o c k c:nr�pot'.. ,~d:. J on . T r�� ue ~ i t rn F'I i n l..;.t .i. n s a q o l f c:nun;:; r:~ .~ nd opP. r�� at.r~s a c lubh o u s e ~-1.i t.h a 2 ') U r.;., .,

DECISION CTA CASE NO. 2827 "- -� l ot.trl(ll?~ b ."' r� and di.r1 .i . nq 1'- oo m~ hut t.he s. e f ,,, ~~ .i. 1 .i. t .i. r. !"; '"' ,�. e f o r- t. he e :: c 1 u ~; .i. v r-? 1.1s e o f .i. t:. s mP mb P r- r,:-, ,~, n d '"' c c c:Hn p i'H 1.i. e d que r..; t: o::. ~ '" n cl .i 1-. r: I' ''~ l"� qp ~; o n c n�-; t ..... p l11 s -�- e ) ! p e n se b as .is. () r.; s ue h ~ .i. L r:: J;::l.i Ill'""' .i.. t: s h o uld h ave b r-?P n r>):r.->m pt �fr- nm P�"�IY IIH::> nt cd p1�� i v .i.l1?qe t."'l>:l?s ~>"lr�~ l'" !�'~ .i.t:. no t �f n r�� t:.l1e ] ,;,st. p a r.. a qr.. r.~ ph o �f !3 P c: t: J n n J 9 l � � () o f F~ � () � No � 61..1 ') ~ o t:. t 1P. r �"'' .i. s e L'""'' �" l::noc'�'n �':I S t.h t? "Umn.ibu t::", Ta): Sect.Jon .1 q .1 ..... () l' ' l::'~ �"' dr.:, : "S ec: � .1. 9 1. .. .. (). (-) C �"�I t P I'' PI'" ' P. t:.,"-1 )! .i. S fl P I"� eby .i.mpDSPd t"l S �f 0 1 ] D\>'1 S : " ( J) nn PI'" C'PI'' i. P. t:.nt'' t::', ClY" one~ato~s of ~estaur �a nt s~ ~rfreshm e nt:. pR~lo~s a nrl other PRtinq places, inc luding clubs~ �"-' r 1d c:: '"' t�r? r- P I'" s ~ t.: I ll' �P f.'~ p e I'" c e n t. o �f the.i.~ g~oss r e c e i p t s . '' ( :? ) Or1 pr.. c�pr �.iet.nt..�s or n p r? ,~ r1 t.r> r.. ~ n f rT' r.; t R ur �R n t s , b '"" r.. r--.; � c: <71 f "" !"; a n rl o t� lw~ ,,. P a t ..i n g p 1 r1 c e s ~ i n c ] u d .i. n q c 11 .1hr.::. , w h en-'? d .i. s .. - t. .i. J 1 erl r:::. pi1�� .i. t:r.::. . �fer �men t P. d ] Jqt\O I'" S � ("11" l>'d. fl PS F.l r� p <:3-F.'I'" Vr?d ~ thr"f:�'e p r-~r � cr~ nt nf t h e i r.. gr-o ss r F?r.:e .ipt s f1�� om r.:;,,,d.r-~ of �f on d Ot'" t�� p fr.. p�:; hm ~" n t.: s i'�Hlcl r-::.e v P n pt? l'" ce nt. of t h e i r q~o ss r r ce ipts f~om r. ;;:,1lr-~ e>f dJ st .i l l P.d sp.ir � .i.t s~ fpr�� mr~ nl �p rj l �irplnl'� t::; r.H" t.-l.i.ne s. T v1o :,,pt.!=; o f c: t�,mmP.rc.irll .in v o.icre;; n ,,.. r.. f? c n i p t r.; !"'- e r- i �"-' l 1 y n 1.1 m be r-r r:l Jn dt.lpl.:lr~i':l l.�. P s l1 a l l bf"' ~'; '" p FI I"' t l 1:. e 1 y p I'' P P�'�ll'� p fi ;~ r1 d J ~;sued � nnP to~ sa l e of rpf res hm e nt s c.-; t::> r�v e d, and ,;:~ n nt. ll P I'" �f o r- r::>ac h sa l e of d.i. s t.ill!?cl s pir.i.t. s ~ fe r mented li~u ors or w.i.nes se t�� ved ~ the cli~ Jg.i.nale;; cl'f the .i n vn.i.c:e ~; or.. Y"ece .i.pts t.o be i s'S u e d to the pur- c:hasel'- or-� c:ustomr:> t'" . " ( ::r,) Un pt'" OPI'" i e to I'" s n r� n pf.:> ,,.. a t .or�s of restaurants~ .,

DECISION CTA CASE NO. 2 827 - 5- r��r �f r �pr.; hmr:- n t pa ,... l nr �s ~ b a r���s ~ r:: ,,, �f E' "" a r1d o t t 1r-' r�� I" �"~ t .1 r1q p 1 a c e s ~�dd.ch "" ''.. P lll o"'i rd:.a.i.nrd 111.i. t:. h.in th e r:,,..em .i. ser,::. c.,r � c ompnu n c1 n �f .~ h ot~ l, mo tel. resthgu~~~ c::Dc:kpit, r.. nce tr �ac l:: , j ;::l i �-�� a la.i. , Ci'\ bo"\l,.. et:., n .i.q ht Cll' dr.:IY c lub b y rnr:'.~:l n s o �f a r::nnnPc: t ..i nq rl oc"..' r'- or�� p c-~r,=, r,::. ,~l q P. t v Je n t y per,.. ce nt of thei.r- qr�� nsr,:; r-ec:P.i.pts. "I.>JIH"t�� e t:.he e..s. t . a bl i s..h.. ment .. ---����������� .��. , ..,.. ��. ' �� �::~ _ r _P. _ oper �a tE~d or ma int_ainP,<j by c ltJb s of any kine:! or� r1_'"'t un:=~ ( Jr.._r-:e!s pr:>c: ti. vp. r:>.f t .1:.1.~ dl o;:;poo;:;,it.t,on of tt)f"' jr : n. E?.t tn <; t;Hn~ r.:l~ ld _ v1J1pH1er�: o 1��. not. th ey_ r,~.::\t~ er: 1:::~ ):c 1 us i. yr:! l y to nH" mbe_r�:5 n 1�.:�. :t; Il l?) r.: qw~e.:t:.s) t.llF' ker~ per- _�;; of th e f:><::. t ,;, h l i. ~-:; IHJI P.rd. s s ha 11 pay U _lf?. cor �r�P.r..:; pnndinq t.a>: at. ttH:?_ r �at:.E,' f J }(PrJ �~ bc1ve. '' [ und r! l'� sc: Dl'. J nq Ol.ti'S:l nr.,puh l.Jc f.kt. t--In. 6.1..10 t.ook e ffect on ~:; r~ p t:. P mb r'-' r. .1. , l ';' b '1 � F< y t .h .i s v i 1��� t: u e , pPt.i.t.i.nrler.. a "'"';~o.�ssPd thP c: lub �f.i. >:e,~ d t:a>:er,:; as o perators of qo lf link s ~ nd r � pr.-�lr:11 .11''�"~ nt s~ c-~ r1cl �~l�:, n pe l���c:p nt.F\qf.-? t:. ,"\: : (c:.":: t:.Pr �pr.. �s t.a::) �fnt�� .i.t:.:o; :,;;:.1lF.! o �f �fD ods ,;,nd �f P r�� mPrl t� r>d l i qtiOI' ' '-'' I w :i. r1 PC", f o1��� t hf-? per�� i. nd c ov<?r� J r 1q F-Jp p t .ern hn ,... l 96r.~ t:.D Dec F.~m ber� .1. 970 J r1 t:. I 1P .01 mou r1 t. n�f' p ::~:? ~ :"_l' (lfJ � 96 . Tt1P. c: l uh p ,... o Lr:> "'' 1:. e cl r:: ] a i. m.i r 1q t.h n �~ s <:; P :,:. s men t: t n be ~tl.i t: h o 11t h '"' ~; i �.::. h P c:: r.-11.1 sf? Sec t :1. on 'I 2 11-1'"' s VP t-.nr�C'I hy t:. he F'r�� p~::; .i. d!?n t 11a ,... cos. T t1e ve t:.n fll p �.:; �;; ,~,\ q f"' l' ' E~ o"::d : " t�1( ) L J ' I C f ' I N f ' I N G t� lc-~n .i. 1 '"' (~uqust:. 4 ~ 1969 "13r.:mt:lemen o �f t.he Hou sF.� nf Representatives : 23 u .,

DECISION CTn cnSE NO. 2827 - 6- 11 11 ;~ v F' t�I tr l trH t O I' ' to '[ �it I f ("1l"' lll '/ !" II t .l ti'1 t� I h .~ ve t. lt .i.s rl r-ty r,;�lqn ~ d H .Ft. 1\ln. .1 7 9 :3 9 , r n t.i. t l r->1"1 : ' m .J N : T ()t�JF f\ID I I'IU cr: n l f'tl N F"mN TH J OI'IEl UF Tl H::: NfYT TUNn l .. I t�IT Er< N(lL PFVF t�IU F: CODF::. f't ~:; (!M ENDED' 11 F'1.11' ��;;1 1a nt the pi' O �.... ��/ :i e,; i ort e.: of SPc t ion 20 -�- ( :3 ) � ()l � t. j c: Jt-~ \/ I , of t �. lt r.~ Cctrt s t.i.ttlt ... .i. on , I tr:H �Jr v P I' � I hr-1 ve vF.~ to e d t. he. �fnlln~td. nq .i.tf?. ms .i.n thj. s bill= pp . <1<1, f:;Fc. II ~?. Tn sr:> r � tinq "' l'l P\11 ~)F~C f� i Clrt .1 9 1. -.. fl ~�lh.i. c lt JmpU SPt::", �'�' c ;.-., t ~' r�� P r� ' s t F.1 >: of t It r.. P f':> f''F' I'' C:P i l t Cl f t l tP. QI'" O t:;t:;. I'" PC::!?.i p t s n f pr �np1... Jclni'" S Ol'" oper- .':1 t .o l'" 5 n 'f r� pr,; t: ''''""" '"' n t 5 � r �e �f l'' f?<r.", hm e n t p ,;,, r J n r� s ;:~ n d o t� It r 1'.. e ;"' t . .i. n g pl i"'C:Ps ; t i11'" F'P. p P I''C P. I 'l t o 'f t.lte gross recr.i.pts from sa le of 'fn o d nr.. l" e �fr� E�~ �~< IHn e nt. .':1 nd se v e n J'.' F' I'" C: r r l t Clfl q r� US!::; r �pc P .i. p t S �f I'" Dill t lt P e.;.~ l P o f d .i. r,-; t i. l J e rl r,, p J I'' J t .s � �f p r �m r-> rttr>d 1 iquot��s nr�� ~�J.i. n r>5 � C:H l f"l'" npr � J r:-~ t PI''"" P I' " Cl fJPI'" �"l f:.DI' " S of r r ~; t �"'~ ' .r I'" a n t s � h '"' I'" r.:. � c: ;~ �f e 5 '"' r 1d n t t 1P 1�� P r~ t i. n q p 1 '"' c: e s , .i. n c: 1 u d .i n q C: 1 I .I h r.~, ~ ~'I l l!" I" I'�' d j ~'; 1". .i. J J P d !":� p i I'" .i t !'~ ~ �f c r� mP 11 t r~ d 1 i. q 11n r �r.; � t ' r hi i n P ~; '"' ,,.. P. c:;pr �vp d ~ ;:;l!H.I h ��I P. n t y pP n :: e n t:. n f nr �n ss rF> c ripts on proprietors nr � oppr �'"-' toi'"S n �f r"P.S t:;:1u 1�� iil n t s ~ ,... c, f I'' P!'", I tmPn t P�"~ I'" l O I"' S � b a t'" S � c:."-\ f es .':1 rtd ot h er- ea t.Jnq pl aces m r.~ .in t a i n P. d vl.i th i.n the pr� 12 m.i. ses or compound of a hotel, mnt:el, rest.hou5e, c:nc: kpit, rac:e t.ract, j '"' .i . ... a 1,"' .i. � c '"' b .?I ,... e t � n .i g h t. Dl'" d a y c 1 u b ~ o r � \1-J It .i.c h a r.. 12 a c: c: e r,, s i b 1 e to fl i:'l tr.. o n 5 nf r,; ,;t .i.d est .:,t bl.i. s h ..... rn f:' rd:. ~; b y me."l n s nf a connecti.nq docw n t'" pr:~s sa qe.

DECISION CTA CASE NO. 2827 -- 7 - ' l he ht. ll' . dF' fl o �f hP t: ,, >: ,,,, f� .i un t�l .i l l tflP t .o !:O hi f t r:> d puhlic. C:Dil S UI!l.i.nq ' TI1n dp v r,:.� lc>f:1m r? n!:. of hotpJg~ PS S P!lt.i.al to ottr- tnur��� Jst .i. r1r.i t 1,, t r�� y � r�� pc; \:.r-�,"\.i.flPd c:e>n,; .i.der ������ Jnq t h a t. big pc-r �t.i.nn cd hol.e l Riel r �rl.i. r lCl s c: ompr.,, �f r�� nm �f n u d s "' 1 e � >: >: >: "Til.i. c:; b.i.l "l ~ H.n. No. J 7r::r:;cr , t~o~,s b ec: omf?-) r::F)publ.i.c: (.~ct. t�lo. hllO. ''Pc~:; pec t �fu l l y, " ( nrm) F E PD r l'tN,ID E. t-u,r:::t:m3 [under sc or.i.nq o ur s ] �rh r:> pi'T) h~":; t- ,,, ti. n n nf the r::lub vJ."""":', d en i c d h y U1 P p P.t:..i. t.i.oner � '"1ho m;;d.n ta .i.ns tll i'' t H cc: t:..i. n rl IJ ~? vJo"l r; not. ent.Jr �1:>ly v etoe d but. mf:> r� ~;., l y t h P ~� Jnr��� ds ''llntels ~ motel<.:;~ I'E!!?> t l1nu r,; E)~5 " on t.llP q r�� nund t 11.:1 t .i. t m.i. g ll t r�n:c, t .r��,"'.i.n t .ll f':) dr:> ve loprn P n L o �f llot. P J s !tJh.ich .i.!:c. p c::;~:;c! nl"..i . F'Il to tt1 e tour�� .i.sm .i.ndustr�� y. T l1 i. r,; i s-, .i. n �f ,,, c t:. ~" '"" r.; t !1 P p n s .i t .i.n n o f t. he Hnu sP. l,oJ8y <:; o"'lnd f'-jp ,:~ n~; Comrn.i.tt.eP wh.i.c:h reported, to wit: "~�lh r. n Con q r-�er.; ,; dPc: i cled tel ~s plit S e ction .1.9.1. into tt"JD p ;:H � t:. s , nne de," l.i.nq ~�J.i . th contr a ctors~ and the other dea l.i.nq ~�d. th tl1nsr.::> who sE'r.. ve �fond '"'net dr��� .i.nks~ the .i.nt:ent:.lon 1-1'"'!5 to C J. ,';\551 fy o"''nd to .i.ITlpn:lVE' . Wh.i.l~ the Congress exp'"'nded the coverage of both 191 a nd 1.91 - A~ .i.t also provided for certa.i.n e>:l:')mpt.i.nnc; . The veto mess ,'=\ge seems to object r.:erta.i.n e:tdd.i.t.i.nns tn tr11 �����{). ~1Jhat 23~ '�

DECISION CTA CASE NO. 2827 �- 8 - a r1cl i L .1 r> n r.:; C' b j r.c t i nr 1'" b l P r.:; c: ,3 11 br:> q 1 P.i"t i1Pd �f I' T 'm th e r�� e,'::\son s q ivP n: ,,., q r> nr..~ r�� �'�ll r�� e cc1e:; on th a t thJ~; s or-- t nf t r1:.: .i. r.:; Pi"'-Ss ed on t .n tl11:-:> c: nn s um1nn pttbl :l. r: . a nd a p ;,,r� t . icttl ."'l r � r�� ~~~c�\S. c�n l.l1F1t hotel dF~\t P 1 npm e n t !:; � r,:, o e s !""�"'rl t:. .i.�'�' 1 t .n 1:.11 r. t .n U I' . .i r;; t J I l d 1.1 �:; t. I' . y , Ill .~1 Y b P. r r. r.; t:.r..�,':\ :i.necl . Tll~C~ !:;P ,.. P i"' S Dn!"l ha ve bc�r~ n l. i:ll ~r. n tnq e t.. hr.r� .i.n tllP i.r 1 t c r�� p r�� P t .<:1 t:. .i or 1r.; c� �f t t 1e v e t. n mr.>s.�::; �:1q e ,o1r1d tt1e dl?let.i.on s o �f ~; tt c: h P rlt.er�� pr �.i.s es '"' s i':ll'" f:? c:nrln cc: t e d 111.i ttr t.tre t.nur�� .i. s t: .i.r1du s tr�� y 11 .:\!5 t:.l1r.>r' �efor�� e been r� ec: nmm P nd P. d . �� �rn .ir1tr.r�� pr�� et. the v eto mess,:\ qf., n tllF' I'.. H .i . ~- P \ll n u 1 d r��e s u 1 t .i 11 t:.h r> r~)�: r mpt.ion n f r~ n t:..i. t.i.es �'�I lr �e;;,d y s u h..i r:-~c::: t r-:~ �f t:. A:-: � Th.i. s ~-1nuld b e ,3 b s 11rd. t�HH? r�� e the Conqr�.. p r.:;r.;; ~�1 .:-'l n t�.r;,�r:l t .n eJ�:P. mpt, J t:. \11 <"1 ~~ r,:.; n p r'.. D V .i. d r.~ d :i.n the b .i. 1 1 � While the Pr es id e nt:. ma y v eto <':111 y .l. t:.r"' fll n ,... .i. t .P m.,; .i. n a t'" F."l f:?Tli.H?. b.i.ll. ttl F.' c n n <cd :..i h .d �. ion dDP!:", not. q i . \IP. hi. m llr P pnt-I P I'.. t-o n ?. pe a 1 ."'In f'�' J: i r-:.t.i.nq L ."'l : : . ( :? rrcl Indnr�� s prn e nt d �':I t c~ d J) I? r-: P. mh r> r� 7, .1. 9 6 9 � C ft �'�I .i I' Ill i'.\11 0 ll l�J.,,\ )I<::;. Fill d f'l P. �'=' fl 5, , fl .i .:-:t.t1 Cr:Jrtqt" Cr;:t::", o �f tl1c-:� r::F:~ public u f t:. 11 p F' h i. l � ) ( F ): II s . .1. 4 , p � 0 ~\, Fr.J.r::. r� e c.)." (pp. 20 -- 2.1, nullo) J t:. Vl i':\c:; by I' F' �''IS Dfl o �f th.i.S Jnt p r �pr� f:� t ,"'l t i o rl of tltc? Commi. tLr,~e t:.h<:~t F<.A. l'lu. l.:d. .1.0 ~�J ,:\ ":'i puhlJ s h r. d .in Volume 66. No � .1.8� p. 4:-:> :31. cd ttl!.:> Clffic:ial Ga :<.: r!t:t.e (1'1C~y ll. 197 0) in s u c h '"'\IIi".'/ t-.hat. Sect.i.cm 19.1 -- A ~-las .inc: l uded .i.n t.he t:F~J-: t. S<"'Vf'? felt'- the wnr,-ds ''hotels, motels. r.. esthouses.'' ()r.:; C~l n .:>,::\dy men t.i.oned, the Ccn.11~ t: of Ta>: f.)ppe,::\ 1. 5, upon pet.i. t..i.on by t .he c 1ub, s u s tained the latter's pos.it..i.on reasoning th ."::t t .ht:> vr>t:.o mec.::.r:;r.1qe \-'las c:lear'.. and unqualified, a s in fact it: was confirmed

[) J?C TSTflN CJ(I f:(I SE Nl1 . 2 R 7 7 9 -- t� I II'. f" ,.., \' ("' ..., ,. '"' 1 ;.�.\ I F' r� , "' f l:. l;,? I' ' mu c 11 t l11? v , c c>r 1 t: 1'" 1., ,,.. 1~ 1' '"' hy til f.~ Uffi c P nf r �I' p ~= .i rh:' 1l t ' t: Ill.< �: = "lfr � . ( ) ll\ F! l' ( 'I i"f. f ; i r : p n � J 1'" . ~:) i'\ rI 1'�1.'\ 1' !: .i 1l F< I I .i l. I i .i n q , l '}' h '1 , ('l. 1'1 ,:-dlird. r�. u . li n :: ?2 FlH r� 1'1.�,, n .i J �':1 , Id . 1 i p p j n P :.:. " \.'.1 .i I' t 1 I' . P f r~ I' I"' I H ":f'' t D y C\1 I 1" lr�! l i". P 1 d ;�\ f�r d ,h l l '/ .1.'1, J')']~�~ . \�'I F' l.'l .i. ~', fl 1.1�1 .i11fnr �m vu 11 l:.ll r"' L !:1 ~c t'.:i.Url .IJ '? [1-1l1i c tt cr:> rlt�.,,~ .i1 �l s f:i F~ c. 1.9.1 -� f'l .J nf llnu :.:; t:~ b i l l f\ln .. l 7 1T�:r,<;>, nDI'J t.h P f':: . ('l. 1.�, 1 .10 W-' "" n n r.�' nf F;r' c t� .i. f'\11 �:; V P l'.rH�' d hy t h r:> r�I' F' !":. i d p I I L i r 1 II .i !"; 'I ("' t:.n Ill I" r,; 8 .':lq r fi ,:-'lf�r-c' d ()II CJ II "~ t: IJ. .1 9h7 . v e tn i.nq r.. f" I'" t ."' i r 1 �:; r. c t i r�, n <:::. o f l: ll C' S r"'.i.rf I" C V F' Ill.lf'' hi 1 l . \/ F~ r��'r' lr �t\l y Yr) Ut"� s ., Jn . " ( t:;r ; n . ) Tn ii �IF (l I . ()( ;UJnP F . r�r f"" i t lr-, r 1 t. i ,.., 1 !-.; Io.-1 f f () s r,; i r,:; L 'H 1 L " . ., ( f' . /1 ��'~ () q lll P fl L i . D IH' d f:'i':\1' ] .i . P I'" " {,<Jp ll r"V P t\ li'" P. i'Hi y n .1lc>r:l 1'.11<"-1 1� t:I1 P p1�� p s JdF' nt..i.r.:1l v Pt:.o I "F' fr'! I' 'I"'F' ri rnr~ r � F' l V t� o ti1 P .inc:l11 s .i.on cd ll r->t:r�, �f r.: , mnt r. J ��; ."' nr:l rr.�'r.:. t'.h clii';; F'":'� Jn t.I1P. 2 0% t C i':l P. 1'" P I' ' "'i t: r'\ : : h I'" .::1 C: k f? \:. h l .l t Il0 t t .D t. ll P. I��Jiln] p ~"� L'C: L i D ll " nut. .~, :.:; lll f�? n t:. i or led P. i'H " l i pr� a l "'! n, Ltl f? CT() np .i .n e d tf1 ,') l: t".he Ft�� es.i.df::> nt. r �o uld not. \! E~ tn \fHll" ri~=; o1�� phr� r.:1~:::. p ~; .i.n '" b J l l h11L r:H1 :I y ""' rr1t:..ir r:~ Jtr?m . Clh v .i.ou s Jy, ~"'l1at. t IH'.' CT () fll Pi'�Hl t by ".i. t:. e m" ~-'1 �3 s ;:m E~n t. .iTe r.;p ct..ion. t<Je do not aqn:'? e. But P.Vf.;>n �" 5!::'\l.trll:i.f'lq i t t .D hi?. !:,;C)~ J t 1-'IDI..Ild r3lSCJ be to pet.i.tJnner ' s fa v or. Thr. Jneffectual veto by th E~ Pr� pr,:..:i.dF,� nt. r� r:~ndfe> r� pcf the ~�1hnle S f? c:t:. Jon 1.91. -��� () a~; not. h .:�l v .i.nq hE~en vet.CJP.d ;d: ;;d 1 ,3nd .it. , t:. her"'? �f 01''� E~ ~ bPC: amP. 1 r.':WJ �"-' 5 .:~1 �1 unc:on~-; t.i.tut.ional ve to h."'s no e �f �fect whatsoev er. (See Bolinao Elec:t.ronic:s Ct:1r� p. v . './ ,':llel'.. .i r:\~ No. 1.... ��- 2 0 7 110~ ,June :: r. o. 1. 9 6~. 11 scnn ~86).

DECISION CTA CASE NO. 2827 - 10 - ll c, ~� lf?.' '/ G' l' � ~�J p c:H p�� t::~ P ~->Ji. t i l t.ll F.~ n nn 1 .i. c j t n r � t1 P r 1F' r�,,~ 1 F :::.t r. 1 .i. t .n 1'1 P n d u 'Z. "' ~ r1d hl�:; ,,~r:; s o c .i E:1 t: r-~<:'' !.1, ;-, t:. .irl c: :lu ::, J n rl of l1n\:Plr::-, ~ mn t:. r. 1 s ~ nd r��� r;~ !::: t-h o ll <::: P !:::. i. n t l1e 20% c: <~ \:. e I" P 1��� ' s i'l I'" r. ".i.tem s " .i.n t Ill? Ill s P ] v P ~,; vi .i. t:.ll �I n U 1F~ m c ;:;~ n .i n q cl"f Sec: � 2 0 ( :": ) . (~r � t: . \/l n f tll P .1 73~~' Cnn s t i tut.i.cm \�.rf l i. t:� h � l:.ll F~ 1'.. P �f n I'"" P. � t. h P p I' T~�", .i . d C' ll t. tJ ;:l r.:; t: he f ' (""li, I P I'.. h :�1 \lf~ t. D . (~II ":i.t T' Ill 11 .i. f"l �'"'~ f' P. V F.' fli. .IP. hi 11 d o t.... "'; r1 o t� r �p f r. l' t:.n �'�1fl r:-~ 11t'i . r.. e r.:: t~r:: t.i.nr1 .i ffl f l n <~ i fl q i':l ['h ':l I'. t� .i. c� \ \ 1 �'1 I" k J ll d D f t.Jl : : � b U \:. r ;.-1 l".I1 F' 1.. t:.n U1 r...' ~-> uh :i c~c: l: n f t.II F�~ !:. .;;1: : il fld t .he 1". ,71:: r � ;:-l t. F~ . Jr1 t-.I1 P por t�. i .n n of ~ r e v e nue h J ] l ~� lfJ.i. c h F:H:: \"II o7d l y .impDS P.S i':l t. r.~ : :~ ~ r.:; r.... c: l:ioll .i.d E� nl:.if.i. e r;; ti1 P t:. ,~, : : E~r1urnr:.~ r � ;:1 t. es tile p p r- !;o Drl<:; l.i e�lbl F.-~ l:.fl C'l'"P fOI'"" \�J.it:.h tllf:~ r::n 1�� r. I? .::; p n 11 d i n q t �'"'~ :: r�'" t.. P � �1 n c D n s t.I' u e t h P \�lf"JI' tf ''i.t:. r.:~ m" o"\!"", f'"" P f f" f' T illq t:D tile 1.-J ilOlP t; F~ c: t:..i nr1 \�I0\.1 l cl t. .i. e tl1 e F'1� F:�s Jd1::- n t ' s h C\ rld in c: h u u c,; :!.nq r~ :J. t:.ll r,�r- tn ,;q �,r�l i'"' D V P. t.he \llhn1 e C:'-PC t:. .i. o r1 ,,, \:. I:. li P r ! : : pr.�n !=; p o �f r~ 1 c::; o r.:1pp��-n v i11q �~ pr - r.J v .i. ~-.> J o n thpr �p _i n l��lh.i.c:h hr.~ d P em s \.In E~ C: C: F' p t. ~ b 1 f.�~ Dl'.. V f? t o t:.ll F~ PI" I t i.l'" e SP C:: t .i. Dfl ,::-, l . t:. fl E' E' ; :pC' f"I SF~ n �f �f n r.. Pqn.i.nq tile c n l 1 t-} c: t :i on o �f t !1 P k .in d n f t C\ : : ~ 1 l .o q e t !1 e r- � Til ~:-~ '"'' v .i..l ~�1h.i. c h ~�1 <.�1 5 s; u 11qht to hF.! p1�- p ve nt:.~:~ d .i. n qi. v .i.nq t:. ll P r:'I' T~ t; .i . d r.> nt". th e p cn �1e1�- the f �fi s ,"lf"'f:'I' " Cl '/ f'~ :i.t:. tc? ITI S .:l. ll r;\ I' ' F' V E' fl\..I P b.i.J.J. 1-'I Cl \.\JcJ he p r~ r � pc� tr � <':ltf" f"' I'"" E' rld r> r .i.r1q t .ll <':\t po vi P I'"' .i 111.1 Li 1 c ( Flf'-' r~ Cu mm c' fli��IPF.\ 1 t. ll P. : : I'"" Pl. F: 11:: .i.n v . D Mrn u tt:., 1 9? r C\ . 161, 5 5 LRn 882 [1 9 01]) . WIIEREFllRE, Ne 5 0 hold that petitioner, Baguio Coun tr�y Club CorporAtion, liable to pay caterer- ' 5 t;:n: in the Amount of P368, 934.59. With cost5 against petitioner. SO ORDERED. DuP 'Z. nn City, 23 0

DECISION CTA CASE NO. 2827 -- l l - J Ctli�IC: Ur<: I t l F~ r� r? b y CPI'l. ify t I leo\ t: t l l i ~; d ec :l. s .icn 1 1-<12\S Sr;~c: t i o r1 ()I'' t :1. c 1 P. \) l T I 0 f 23u 'I