ANGELES CITY vs. ANGELES ELECTRIC CORPORATION- Injunction on Local Taxes

ISSUE:

Can an injunction be issued to enjoin the collection of local taxes?  

HELD:

YES. The Local Government Code does not specifically prohibit an injunction enjoining the collection of taxes. This is different in the case of national taxes where the Tax Code expressly provides that no court shall have the authority to grant an injunction to restrain the collection on national internal revenue tax, fee or charge with the sole exception of when the CTA finds that the collection thereof may jeopardize the interest of the government and/or the taxpayer. Nevertheless, there must still be proof of the existence of the requirements for injunction to be issued under the Rules of Court (i.e., clear right to be protected and urgent necessity to prevent serious damage).