TAXATION REVIEWER FOR THE 2013 BAR EXAMS: Notes: An LGU is independent and autonomous in its taxing powers and this is clearly reflected in Section 130 of the LGC which states: SECTION 130. Fundamental Principles. - The following fundamental principles shall govern the exercise of the taxing and other revenue-raising powers of local government units: xxx (d) The revenue collected pursuant to the provisions of this Code shall inure solely to the benefit of, and be subject to disposition by, the local government unit levying the tax, fee, charge or other imposition unless otherwise specifically provided herein; xxx. [Emphasis supplied.] An exception to the rule on relativity of contracts is provided under the same Article 1311 as follows: If the contract should contain some stipulation in favor of a third person, he may demand its fulfilment provided he communicated his acceptance to the obligor before its revocation. A mere incidental benefit or interest of a person is not sufficient. The contracting parties must have clearly and deliberately conferred a favor upon a third person. [Emphasis supplied.](2013 TACORDA BIDO BERNABE & DE LA VEGA FILES/NOTES 338)
Posted on: Sun, 18 Aug 2013 23:27:03 +0000
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