Section 11Sec./Art. 11

Tax Provisions. - The grantee, its successors or assigns, shall be liable to pay the same taxes on their real estate, buildings, and personal property, exclusive of this franchise, as other persons or corporations are now or hereafter may be required by law to pay.

In addition thereto, the grantee, its successors or assigns, shall pay the value-added tax under Republic Act No. 7716, as. amended, or a franchise tax of three percent (3%)per annumor at such percentage as may be prescribed by law, on all gross receipts of its telecommunications business transacted under this franchise, whichever is higherProvided,That the grantee, its successors or assigns, shall continue to be liable for income taxes payable under Title II of the National Internal Revenue Code pursuant to Section 2 of Executive Order No. 72, unless the latter enactment is amended or repealed, in which case the amendment or repeal shall be applicable thereto.

The grantee shall file the return with, and pay the taxes due thereon to the Commissioner of Internal Revenue or his duly authorized representatives in accordance with the National Internal Revenue Code and the return shall be subject to audit by the Bureau of Internal Revenue.