Practice question
A power GOCC invokes Section 234(c) to exempt its entire investment portfolio and unrelated commercial office building. It proves no qualifying machinery or equipment use for those assets. Which is sound?
- GOCC status exempts every asset under that subsection
- Section 234(c)’s specific machinery-and-equipment category does not itself establish a blanket exemption for the unrelated assets
- Every government corporation is identical to the Republic for every purpose
- An office building automatically becomes generation machinery
- All investment income determines real-property use
Legal references
- Local Government Code, RA 7160, Sections 196, 198-199 and 234: https://lawphil.net/statutes/repacts/ra1991/ra_7160_1991.html
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