CTA Case No. 3719

DECISION —

CTA CASE NO. 3719 The al lecec dafielency wie hank bax WAS bry othe re pondent oan the interesh lncemes derived by the petitioner fran bho Cenhral Bank Certkifia oft Todeb techs CM@BROT os) wd thy the following pertinent provision thermears

AAP TORO CF TSX LL BARS

yaymenrt oof Rhys concr anh pve

PLIVY = Phe Bart:

peanetog tax ary aMLUM, Lf ary. made tea thes CE "Ae d'oof Exh.

crf Om the other hand, the defarcienmcy documentary and Se dence amps bLaren we on the petitioner ods ha the resporcdenrh * ss gakment af ds of krust purer dt tea bran the ooled Tas Goce Cnow See kien Ve77 Vay Cores, es amencec).

’ queestiang of law, pure ancd simple, dL. Whebher oor moh the Gernbkratl Bank of the considering the a sumption oof the tax liability Clause printed an the face af the Central Bank the payment of all kinds af taxes, aineluding the 80:

DECISION ~-

CTA CASE NO. *719 S% tyank bax dn oqiieekiar an the tr herve: rroecd carr paid to the holedere of

a Wve

hee oor onmoat the brash receipts 4 in conmectian with the Jlethers of credit are claecs of trust adm order to be eubfeck to bie doacumert barry Stem ie and seience athama hax under Chen Sis:

the prenLS?7 Tax Codes ame meyer a suimlae auepueriche that obhe beuet pecedph ode omibdernk oka the said choc women hae YAY cl 43 amp tax, the petibierner the party liable for the t Orn the cefiecdenmcy SA bank bax of Pere, Geo. Ao, involved ain othe fairet sto ,y ther o ie mer daeparkes contemplated under Seehienm Bas oof the Hahaoor,ad Internal Roery apy ues Cece , ame om Centrad Bank Merkbifteates of (CECT) lay ald renee Cine Luchineg here an) ayved Hepp dyaryl, financial intermediara.

are hme duchitybes dr roy rece lp kes for Purpose af camputing the hank chives Central Hank has ageumecd liebility to pay any and all ta:

whieh may accrues fron the iuonterestea oan hhe c (Tos paad ote othe holders thereof, anced

Ones

Le

DECISION -—

CTA CASE NO. 3719 rey here fore y Tehyes coarse? free 07] umes ofoy the Cenkral Peal oan arcorcbance of with the provision af the bas Liabidaky cleus cpa Leeck se afore frad Tenses s cif ble croprceespeaiehavicy nel pw’ owy smite, lh ary, pected hal thie hovlcler oerf capyle foes ak ited provision, the Central - Pas ommdy oon hhe anberes payment oof the taccamne ancome tak rot om iskiner bk } cp edie mab deve hy acprchespyt Lup pio bt the can shento oprachiecr oof the Cenkiral treme aed pie cak bres:

Ineadricq puade. Oooceard ing bo reeponcdenrt, the wording gry thie sump iar af Bant tax oon

Lame

payment oof the cor anc Lrg interest earned, if any, paid to the holder af the te byes phica CoO es POV cha Prey tax" Jaly dae inmberpue Lag mes ar inde Marry dee" oop "ald

DECISION -

CTA CASE NO. 3719 Gedbklec aes the rule thak bhe question ae tea whe shall opeay any giver bay ape ehrat omhald tee Die of oe of whieh can nok be afferctech by phe: giecy carkre ag teoowhied the Government is mok a parhy.

Thai » Of course, ti there prediadter bo Lhe rich, if oanmy, of @ opaearty te bby agremmcrt be chamariel redmburcscarerb freear thie cbhier pear ly. Tek oemehy or dahit of ~edmbieeement de docdepencherk oof. and fore dam he, ver pinenrk tio mer td ber bo bass Bre mare ane) cavalier bie menebi bones preemgem berch byy 1 AVS (Gibbs vs. Collector of Internal Revenue, Loe LabdGés amel bond Ciriclerr Sect Len eae? ot Thies heer applicable Mational drberncadl Rescue Cocke €'rebioap RO gf hhe Marte. anthinre Troicleb techie: for tace Laurebidy des bey green sp rye vee of computing the due therean

PLE Py

umnption that payable by the holder bank, fin the

Central Bank

umecd opayment oof any ar all wide okhe brole of the TET op drier earrrect bherecr 4 epee py aston ion af liability

DECISION --

CTA CASE NO. 2719 embodied im Cher Mer hata mf Toshotloectross carcrriak affect obhe raighk of Ube Geer ramen k fo mod deed khes Fas frram fhe persen specified dy the law as Lionle bhesr Sinee the SA bank fot omy arses ered ahs ais dmposed iby law upon pebkikbhieren ad mak oar hhe Cen hra] Prartk a pai b a arver Mya Tape raes Poary be of Commun de ak iors bes bhesrre fore Tielite for fbyes Hdeaficiency bank bas af PCR? .&éty, Wo. Thies Laer is clear. Bota khiener ses oriohb, ff Same, Fream ae i horde he ope tylered tt ateordance sath aymrieny b tbe aqreemeyt with the Cembrad Beayh,

Tin

Ang pe ba bd eager Hye amcruury & cf PL4l , TAG. OG resp es ep king ad Lesepecl We fie iericy documantary anc se tence ehamp te abo othe rate of m4, ao Peay ere aaa Pen Oe Ces cere i cher ak tery Lape es pe och lany, of the applicahte Webtional Snternal Revenue Code, oopsporcent avers dn his eniewer her bhi fihaen for peyvd ova p and affirmahive penn.

defense Thats:

Purguank ba See tion 106 of Revenue Regulations Ne. 24, otherwise known as the FRevised Documentary Stamp Tax Regulations, inplementing the provigsians in (now aupreh eh eh the Tax .

DECISION -

CTA CASE NQ. 2719 dn omennecd ion with lek We ares footrest, subteck tea the oaffishiure oof cacumentary ard ¢s

VNPISS a

dour os Rhiepesforcn, Taatle therefor, eiph., pe 4 of the The conkrotling @hahkuke ig Seckien per kar oa fooeibaeby puro. Dele rs [wre aw ry ws wenn keke te My aye meyet oy Pele op rhe of Crust, wheres Thy gee ahaa ld ties maces ee: a raoctusiby | fene the payment oof oa Thue athyeryt wi yout fa echemp bar oom cauie hy mete ating) acectark ewe firblares Timit, 9 the ayy pieceyey oom clemel oot ney wey toss oetvad bee cemnpiebert cr bly anger ae bead 7. y Ten roa thre fdare of bho ther me Popaeie pales cle erciibior, of : Achy cn:

by oedichibionad deen unrerrk Iyer 0 wor} caf Achar marie oy cf he foe peie wibvbeby ede Tees comm ost erfoay dared ak,

Pq

(he amour ac amir oF

Fudd

uineler Thee merhoeage, abece, on chaed oof ecified Gn such oearkgace, pledges. cre dees | ert brevet y hhe 0 dimcumesahowsy femmes thay presser ibword ly iba mpibeer? ory thy ful amemaie of tbe Te cay Miyves bares recep an oconmectian with oc] e3 ky @ubjectk to the my + affaixture of documentary ane EMM EYES S To facilitate the importation af merchares rot have are goods for an Amporther whi chee

DECISION -

CTA CASE NO. 2719 te Ton ance tive importation, an arrangement ies made ouhereatry aneech dmporter ie oddemec by the bank be open a Te kter of eracdit. Lipor oaricdival af thie rere hanrets. tres Puarvhe acvantmer or payee bbe ful] cess of bie importhakion in oarder khak the gqgooce cer inom poeleasec, fut hhe bank recpadrrs bie Layee Lear hey ooceernrtes trust hkurnine ower oof bhe dr pos hoo bye dmpar cher.

The impor ker hirer poceipte wherean verpodpy trish frranm thie lye aaerkericivsleerdcye haved pe bank hhe tamer kecd oaacde od ob dicate biaimes ode them fh trtrat fer ther teanb, Thiet chore cumearct alithoar a se we obhe impearkie here) thie ogeeiedes for fhe account oof che bank, under ob ticgaddon fe remi bk te shel ar te bhhe bank bkhe pracmmades of the sate. 04 return them, tf nak satel wikbin a cerbadn agreed Thug, ln Philippine National Bank vs. Jose, advance wy for the MCPs ey? to an pre:

importation of goods, the former taking full title too oockhe cqeace oak Lhe very qapndneg apd continuing

DECISION -

CTA CASE NO. 3719 te do sa urhad he ies ch, or if Lhire ocersedes lpayees soled, urtad the qpgreeeecdts oof the gale are teornmed aver ho fim lsy bhe digo ber op slice ogaars On interest. Ther Caner es Lt af hlaes mesrocarc i ge comkinues to feo seerhoed an ble camer thereat or an the person who tas advanrmed payment, tnbkid he has hear patel in furl dy or ay be merehandi se has Adrrmacty hee o@aode, the proceeds oof the sele he hae rec tes fata bby Efe importer oor by his oe ABEL Le ye vy py hese exes (Philippine National Bank vs. Vda. © Hijos de Angel Jase, A drusk receiphk avs comes teder ec therefore NS Ay cheer asp a bye bLreansactian intended to aid an famancane dmpor key and abtbeack cl yes WC ches reo b haven esr P fie Desde Fuad aye serves be famance bhhe dmportakion or purchase of :

merebranecdice, ape wha may mot oodye able ba acquire crecddho omer eh thacoughd mbit baewyp oan oco)llateral, of the omercehandiee imoor tech oro pure ta Sue, 961, ecthed in Samo vs. Feople, 5 A el adoof tras ao conveyanae am trust hy Wary cof mura ty » subtree tk hey én condi tian of semable abo oany tine hefare the sale of the property. A deec conveying land to a x

A

DECISION -

CTA CASE NO. 3719 ~— 1 oO a trues hee mere collateral cemurity for hhe pac mer ck of ao odeibh, with the cancditdon bhabk wh ahall becomes vod oon bhe payment oof the chet owlien clue, anc wath pawer oof the Lruetee te gelilo othe TLeaned and pay the A ocbeed of krusk aim the dea fuand hy sure of aa mor haace. (El Hogar Filipino vs.

Paredes, $5 Phat. U9.) Py diedenbkiy, as oan cdevec oof Aohrugk recedph ies eeecimikeercd be meerure: ar torus & acccoumpr | dics heed aed mf fre thee aa é andeth keene:

pecurilby For thes opeayenep bk om f ary aeeounk, mi ty authority teaoove bd bhe prapeer ky oor mercharnedicme to pay hha hed k ear Ob lication. Th reget pers ne eso thyerpun faces ida. Prag prs ar guamen bh Sherr owtbh I ohoooke CObhe cOCat faxwbure oof bruh. are yoancd sos ene amp oparoetiapk te

Lyon

enue Fecqubakiones Pe. Ma, obheriwt:

LS4& of Re

cs

Documentary %

vamp Tas Requlations, ass thie Flesye:

of othe implementing the pravigtoans of Geohkdny 2.

enue Cache.

applicable Hational Internal already ia) Pie thermore y the Vv Lees rac] that meepac tment. of A Taw without any kia l aniarclmean t af bese at hvac Tare saul adoowith enforced by administrative oafftletals chare ~ ~ - DECISION — .- CTA CASE NO. 3719 nteunesuiry | hea legislative approval and hve adminietrak ive interpretation.

(Asturias Sugar Central VS. Commissioner of Internal Revenue, Lov! TP? Sep, AC, ao? SCRA 6175 Commissioner of Internal Revenue vs. Ledesma,

Wary

LoL TBO , SORA ~ L970,5 , Inter— Provincial Autobus VS. Collector of Internal Revenue, Sy hal. area Mindanao Bus Co. VS.

Collector of Internal Revenue, [. - 19°78, Feb, 24, 961, 4° SCRA 8's ABS-CBN Broadcasting Corp. vs.

Court of Tax Appeals, %'$9h SCRY 14 The pravisions oof Section FLO Gm redakimo tea See tian the old Nakional frberrmad Poewrnue Cerfe, the applicable law. were reenantec! ea thou amendments ae Geo biones TSP and Baa

Kha

cdoanadl fraternal i sve Eee oamel oacpvadm or prac ted wikihow, Amenpchneny tes Enh Ssese ba pyes Tha curred OES a ivialy, af the pr spp Pare floes, Woder bhe foregoing doctrine of legqislahive reenactment, it seeme Clear therefore that the interpretation of the applicable daw cantained in dan 1546 of Revenue Regqulationgs 36, abherwise knew as the Reavy is Documentary Stamp Vay qulations , implementing the pravisions af Seakian FLO ain

DECISION -

CTA CASE NO. 2719 ™ aL chicas Bee (remenachoad ees Se rela AOOEY and 344, one Geoctkions 186 and For y. thak trust receipbs descuec Any cerprec haces Wild: Jebhers of are decks of bie.

creclites eub doch boa the affaisture of doactlimoen teary Canc dence) osbeyepes hag already rec aived leqislative appraval.

re raddoaner hoveyver argqiuos btipak ab de mat the party Jliakle for the paymeank of the documentary anel SEIT PES be bituted a "withhoaleing acert! for supe: by bry ayy pravigsian af khe National Trterimal fhe Jere Cocde.

persan Merk LPC TO ATICD g

PATE UPIE] AUC GEE) Lain Cj Core

Lhe coaayes . (Gee, PIO , later Loyal Tothernmad Pie verignas Linear y ties arid mtypreaey ene anc aees Lon men t of the obla ar pamper hy incident the eto, documentary baves for and in respect oof the trangactian so had or accomplished shall Ie perid boy the maker, SiLgqner , LSSuer,

ENC

ephar, ar btrangferroar at the time the act is care . (Sec. 2, Regs. 24, Department of Finance, 22 0.6.

Tuason vs. La Provisora, 67 Fil Zé;

Sit

DECISION -

CTA CASE NO. 3719 i -~ ed { Inter-Provincial Autobus Co, VS Collector of Internal Revenue, ¢S FRad. 2° ,) A ocursery e@ianination of tive bras k rece dph oof petitioner Philippine Bank cyt (amMMUunN do ak LOS 4 dilly show that while pebitioner may ook be the signer, at the tine khe transaction ts head oor aceammlishec, 3-@,, at the time af the desuance of the cdacument.

the pertinent oporthdeane iher ere fis Pha ippanie Rank of Commun toebticanes PECE TVET , LEO tees foetus Drareuricdesy: men kionent, from thre Pha Lipp tine: Marie cyf res tene bes dy

Yo AGE

BANE anc and ain corsa

DECISION —

CTA CASE NO. 3719 by (4%), and for pp caper boy them, core eC ewicjee

PHC

er be me Leer ooyf Ares

GociimeryLss

[ J oS. bro omanwitrcbouees cre tka che tivesrrer} oreo ceyverined by Bhie dlocurmop ies, eal hy Phe pourepcries ef outta des, ec flege tyes PL peeses cif Teridiniey, Lary Joarliner, eh ew ANIC] q Shih ppv red a Tranesshrl pup dnicy var rrebent Vong) wath them in Taminery ber en pew pare fuk wpe arch yard by Boake ary qabher wary oof ocepcdibional ¢ tna ibang, fy, Merde, or crbbreriwys tev bane Bes pre @ Bank af Contundeabione he bhys orelakive ac enh for the oprh ocyf ary af mtne/oaure te Bhai Lipadinme Bante orf Ceoepmenyiog b Lores Bank oof Cen auindea bk bony bo apply ey ey Cokhyer: diieleob bes tine Nate Meuse ween soveay wee iqned, made, prepares arr) dese sule@c by pehkibtioner to be merely fillled-up and aaigmecd by the importer. Ags Clearly ahown by the goods (documents oar inehrumenotsad, the praperty oaf the Philippine Bank of Canmmunicationg tea the al ¢

DECISION -

CTA CASE NO. 2719 importer. Whaide othe imporkber may le the pebibtioner who we aLondng the urs bing othe trust oremedmbh oak the time © the slien lreact oa eceompe dl aehiercds Te Say bran ther i ae wooed cl big hey depres Phe plain ane momiebhahable meantime of ordinary viride. SLnce tarius & reece dt py kes eX 3 eootbe port be affix hue af documentary and Slempere cavers Conder othe law then applicable), petibioner ie the party iupcan whem this chity devils ane therefor gulbbjpee kt ote the payment of the amount of PIAL, I BG6.0O dove dyer din thie AMemoared deci ly. petitioner Phi lippame Fark cf Cammun toe bier os 1s Tiah des Pes prety resnonrecdent Coma es Lorre: r cf Tntbernay Pooveeniiie obi ameuskes of P77. 6GO,40 are PLA, [email protected] as FY deficiency bare arid cChacumenkary ws hangs hake , thes cle from is aomy appear lt hereby affirmed at petitioner’ s costs

AMANTE FILLER

Preaiding Tucdae

DECISION —~

CTA CASE NO. 3719

WE COQ IML

ee CONSAZANTE T,. ROAQGQUIN Axgsmae date duce

Boy) REYES

Aes darbes turedepes C&R T $F FT CA T ft ON I herrcehy cane hoa fy that, Phage chee dos ten WAS reached after due comsultatian ame the members of the Ceo & of Vas PYF Pes a as wn A COMO CL Arle: & with Seetion Po, Arhacte VIET af the Conmeti tutien.

Bervairle ,

AHMANTE FALLER

Mresicdinty dudepea

Court of Tax Appeals