Court of Tax Appeals
0' 'L Tcfof Thl. Philipp:-.IE8 L. "Llt' U F T A..:\. a P, L8 Q·.Ezon Tabacal'Era I Nsurance Co., Inc vs. Commi Ssioner of Internal Revenue
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l. "Llt'( u F T A..:\. A P , L8
Q·.ezoN
TABACAL'ERA I NSURANCE
CO . , INC., Petitioner ,
versus
COMMI SSIONER OF
INTERNAL REVENUE ,
Respondent .
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C.T.A. CASE NO. 2081
D E C I S I 0 N
Petitioner, a corporation filing its income tax
returns on the calendar year basis , was required by re-
spondent to pay the sum of ~26,930 . 10 , as deficiency in-
come tax and delinquency penalties for the year 1968.
The basis of the assessment was the application, effective
July 1, 1968 , of the new corporate income tax rates of 25%
and 35% prescribed in Republic Act No. 5431 , which in-
creased the old rates provided in Section 24 of the
Revenue Code .
In its appeal to this Court from the decision of
respondent dated January 9, 1970 denying its protest
against the assessment , petitioner contends that under
Section 10 of Republic Act No. 5431 which provides that
the provisions of said Act 11shall apply to income for
taxable years beginning after June 30, 1968 , 11 the in-
creased rates are applicable only to its income beginning
January 1, 1969 and not July 1, 1968, since its taxable
year , which is the calendar year , begins on January 1st
DECISION -
CTA C~E NO. 2081 2 and ends on December 31st each year . The issue to be resolved is already well settled .
In previous cases involving the same issue , it was held that the increased rates pre- scribed in Republic Act N~ . 5431 are applicable to income of calendar year corporations beginning Jan- uary 1, 1969 and not July 1, 1968 as interpreted by respondent.
Thus , from July 1, 1968 until December 31 , 1968 , the income of such corporations is still subject to the old rates prescribed under Section 24 of the Internal Revenue Code, before its amendment by Republic Act No. 5431 .
('lhe Nanila Times Pub. Co., Inc . v. Comm. of Int . Rev., C. T •• Case No. 2263 , Dec . 17 , 1973, cert. denied in G.R. No . L-38154, May 10, 1974; Zamboanga ~ood Products , Inc . v. Comm.
of Int. Rev., C. T.A. Case No. 2053 , June 3, 1974; Colgate Palmolive Phil., Inc . v. Comrn. of Int . Rev., C. T.A. Case No. 2293, June 10, 1974; Phil. Aviation Corp. v. Comm. of Int. Rev., C. T.A. Case No. 2195, ugust 5, 1974; First Insular Bank of Cebu v. The Comm. of Int. Rev., C. T.A. Case No. 2262, August 29, 1974. )
WHEREFORE , finding no valid ground to deviate from the aforesaid ruling of this Court in said \7
D CISION -
CTA C
NO. 2081 3 cases , the decision appealed from is hereby reversed . No costs .
SO ORDERED .
Quezon City , ovember 20, 1974.
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RO
N M. DMALI
Presiding Judge
'4ft-kv~· "' NISIAO R.
LVAREZ
ssociate Judge
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0 L .
V NCE-
ssociate Judge