C&G Law is representing three of the country’s biggest conglomerates in challenging the legality of a local government unit’s ordinance imposing franchise tax on shopping malls.
The case involves administrative and court proceedings for the nullification of a local government unit’s ordinance imposing franchise tax on shopping malls. This case is significant because it may determine the limits of a local government unit in imposing franchise tax on business, such as shopping malls, which are not required to obtain a franchise or special license from the National Government. As far as we are aware, this is the first case dealing with a challenge on the imposition of franchise tax on shopping malls.
The outcome of this case may possibly impact the business of mall operators, including those operating outside of the local government unit that issued the ordinance.