Practice question
In the historical fuel purchases adjudicated in PAL v. CIR (G.R. 198759), the franchise expressly addressed taxes billed or passed on to PAL. An examiner applies only the ordinary purchaser-not-statutory-taxpayer proposition and refuses to read the franchise. Which is sound?
- Every ordinary buyer automatically receives PAL’s franchise
- The franchise could never affect a refund claim
- The Court denied every PAL claim on that theory
- The specific franchise provision was material and supported the purchaser’s entitlement in that case; the holding is not a universal right for every buyer
- Any present airline purchase is automatically tax free
Legal references
- Philippine Airlines, Inc. v. CIR, G.R. No. 198759, July 1, 2013, main decision: https://lawphil.net/judjuris/juri2013/jul2013/gr_198759_2013.html
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