CASE DIGEST

CASE: Commissioner vs. Algue, Inc., G.R. No. L-28896, February 17, 1988 FACTS:  Private respondent, a domestic corporation engaged in engineering, construction and other allied activities, received a letter from the petitioner assessing it in the total amount of P83,183.85 as delinquency income taxes for the years 1958 and 1959.  Algue flied a letter of protest or request for reconsideration.  The disputed amount was a P75,000 deduction claimed by Algue as promotional fees paid to individuals for their work in creating the Vegetable Oil Investment Corporation and its purchase of properties from the Philippine Sugar Estate Development Company. The petitioner contends that the claimed deduction of P75,000.00 was properly disallowed because it was not an ordinary reasonable or necessary business expense.  The Court of Tax Appeals had seen it differently. Agreeing with Algue, it held that the said amount had been legitimately paid by the private respondent for actual ser...

 CASE: City of Cagayan De Oro vs. CEPALCO, G.R. No. 224825, October 17, 2018 FACTS: The City of Cagayan de Oro enacted Ordinance No. 9527-2005, imposing an annual Mayor's Permit Fee of P500 on every electric or telecommunications post belonging to public utility companies operating in the city. Petitioner, Cagayan Electric Power & Light Co., Inc. (CEPALCO), a public utility engaged in the distribution of electric power and the owner of an estimated 17,000 utility poles erected within Cagayan de Oro City filed a Declaratory Relief with Damages & Prayer for Temporary Restraining Order & Preliminary Injunction before the Cagayan RTC assailing the ordinance's validity. CEPALCO contended that the imposition, in the guise of police power, was unlawful for violating the fundamental principle that fees, charges, and other impositions shall not be unjust, excessive, oppressive, or confiscatory. The RTC dismissed the case due to CEPALCO's failure to exhaust administrativ...