On Wednesday, Manila Water declared that the Supreme Court’s ruling, which forbids it from passing corporate income taxes to customers, will not have an effect on its day-to-day operations.
“The ruling of the Supreme Court En Banc does not have a material effect on the business and operations of Manila Water Company, Inc,” the company told the stock exchange.
“The company has been granted a franchise as a public utility under Republic Act No. 11601. Pursuant to RA 11601, Manila Water no longer deducts its payment of corporate income taxes as an expense and shall continue to be liable for income taxes under the National Internal Revenue Code,” it added.
Manila Water said its external counsel has receive the May 15 Notice of Judgement by the Supreme Court for several cases.
The concession agreement between MWSS and Manila Water was recognized as lawful by the Supreme Court in the decision, it stated.
“Manila Water Company, Inc. was also declared as a public utility subject to public service laws, including the 12% limitation on rate of return and the prohibition on recovering their corporate income taxes as operating expenses pursuant to the Supreme Court’s ruling in Republic vs. MERALCO,” it added.
