Quiz 1 Questions

Question 1

G.R. No. 125948

1) What is a common carrier?

Answer 1

Art. 1732 of the Civil Code defines a “common carrier” as “any person, corporation, firm or association engaged in the business of carrying or transporting passengers or goods or both, by land, water, or air, for compensation, offering their services to the public.”

Question 2

G.R. No. 125948

2) Were the FPIC’s pipes considered common carriers? Why?

Answer 2

Yes.

Based on the above definitions and requirements, there is no doubt that petitioner is a common carrier. It is engaged in the business of transporting or carrying goods, i.e. petroleum products, for hire as a public employment. It undertakes to carry for all persons indifferently, that is, to all persons who choose to employ its services, and transports the goods by land and for compensation.

Question 3

G.R. No. 125948

3) What is the reason LGUs are not allowed to tax common carriers?

Answer 3

It is clear that the legislative intent in excluding from the taxing power of the local government unit the imposition of business tax against common carriers is to prevent a duplication of the so-called “common carrier’s tax.”

Petitioner is already paying three (3%) percent common carrier’s tax on its gross sales/earnings under the National Internal Revenue Code. To tax petitioner again on its gross receipts in its transportation of petroleum business would defeat the purpose of the Local Government Code.

Question 4

G.R. No. 200289

4) What is the standard of diligence required of common carriers? Why?

Answer 4

The standard of diligence required of common carriers is the extraordinary diligence. This is to ensure that extraordinary responsibility is ingrained on common carriers when they are in possession of the goods until these goods are actually or constructively delivered to the consignee or to the person who has a right to receive them.

Question 5

G.R. No. 200289

5) What is the prima facie evidence that the carrier is remiss in its duty?

Answer 5

The prima facie evidence that the carrier was remiss in its duty is the damages present on the 6 container/skids.

Question 6

G.R. No. 200289

6) Why is a customs broker construed as a common carrier?

Answer 6

A customs broker has been regarded as a common carrier because transportation of goods is an integral part of its business.

A customs broker is also a common carrier, as defined under Article 1732 of the Civil Code, to wit, Art. 1732. Common carriers are persons, corporations, firms or associations engaged in the business of carrying or transporting passengers or goods or both, by land, water, or air, for compensation, offering their services to the public.

Question 7

Notes:
1. Types of tax.
A. National.

NIRC. Business tax. This is where double taxation would have applied, not on the LGU.

B. Local.

LGU. Franchise tax. Not revenue raising but for regulation.

2. For a customs broker, transportation of goods is not the main activity of their business; it is only ancillary. But the Supreme Court reiterated that there is no distinction if it is either main activity or ancillary activity if you are involved in the services of transporting goods to be included in the definition of a common carrier.