Practice question
After a properly heard application, an RTC preliminarily restrains a disputed business-tax auction while the timely challenge is litigated. The taxpayer announces that the order conclusively establishes permanent tax exemption and binds the final judgment. Which is correct?
- The provisional order preserves rights during litigation and does not itself finally adjudicate the tax merits
- Every preliminary injunction creates a permanent statutory exemption
- The city loses all power to defend the assessment
- The bond becomes the final tax judgment
- No evidence may be received after an injunction issues
Legal references
- Rules of Court Rule58: https://lawphil.net/courts/rules/rc_1-71_civil.html Rule58 Sections4–7 and9.
- Angeles City v Angeles Electric GR166134 June29,2010 MAIN: https://lawphil.net/judjuris/juri2010/jun2010/gr_166134_2010.html MAIN application of Rule58 to local-tax collection.
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