Petitioner protested the assessment on the ground that the documents subject matter of the assessment are not subject to DST. 8 However, respondent denied 9 the protest on December 28, 2001.
a. Repurchase Agreement -- BSP Seller Basic 1,656,000,000.00 x .30 P2,484,000.00 200 Add: 25% Surcharge 621,000.00 Compromise Penalty 25,000.00 P3,130,000.00 b. Purchase of [Treasury] Bills from BSP Basic 5,038,610,000.00 x .30 P7,557,915.00 200 Add: 25% Surcharge 1,889,478.75 Compromise Penalty 25,000.00 P9,472,393.75 c. Savings Account Plus (page 1307 of the docket) Basic 3,389,515,000.00 x .30 P5,084,272.50 200 Add: 25% Surcharge 1,271,068.13 Compromise Penalty 25,000.00 P6,380,340.63 GRAND TOTAL P18,982,734.38 7
WHEREFORE, the instant petition is hereby PARTIALLY GRANTED. The subject Decision of the Commissioner of Internal Revenue dated December 28, 2001 assessing petitioner of deficiency documentary stamp taxes is hereby AFFIRMED insofar as the Savings Account Plus is concerned. The deficiency assessment on petitioner's repurchase agreements and treasury bills are hereby CANCELLED and SET ASIDE.
Accordingly, petitioner is hereby ORDERED TO PAY respondent the reduced amount of P6,355,340.63 plus 20% delinquency interest from August 23, 1999 up to the time such amount is fully paid pursuant to Section 249 (c) of the [old] NIRC, as amended, covered by Assessment Notice No. ST-DST-95-0042-99 as deficiency documentary stamp tax for the taxable year 1995, recomputed as follows:
Savings Account Plus P5,084,272.50 Add: 25% Surcharge 1,271,068.13 TOTAL P6,355,340.63
SO ORDERED. 12
I.
WHETHER X X X PETITIONER'S [SAP] WITH A HIGHER INTEREST IS SUBJECT TO DOCUMENTARY STAMP TAX.II.
WHETHER X X X THE CTA EN BANC ERRED IN NOT ALLOWING THE WITHDRAWAL OF THE PETITION AND/OR CANCELLATION OF THE DST ASSESSMENT ON PETITIONER'S [SAP] ON THE GROUND THAT PETITIONER HAD ALREADY PAID AND SUBSTANTIALLY COMPLIED WITH RR NO. 15-2006 AND RMO NO. 23-2006. 23
Sec. 180. Stamp tax on all loan agreements, promissory notes, bills of exchange, drafts, instruments and securities issued by the government or any of its instrumentalities, certificates of deposit bearing interest and others not payable on sight or demand. - On all loan agreements signed abroad wherein the object of the contract is located or used in the Philippines; bills of exchange (between points within the Philippines), drafts, instruments and securities issued by the Government or any of its instrumentalities or certificates of deposits drawing interest, or orders for the payment of any sum of money otherwise than at the sight or on demand, or on all promissory notes, whether negotiable or non-negotiable, except bank notes issued for circulation, and on each renewal of any such note, there shall be collected a documentary stamp tax of Thirty centavos (P0.30) on each Two hundred pesos, or fractional part thereof, of the face value of any such agreement, bill of exchange, draft, certificate of deposit, or note: Provided, That only one documentary stamp tax shall be imposed on either loan agreement, or promissory note issued to secure such loan, whichever will yield a higher tax: provided, however, that loan agreements or promissory notes the aggregate of which does not exceed Two hundred fifty thousand pesos (P250,000.00) executed by an individual for his purchase on installment for his personal use or that of his family and not for business, resale, barter or hire of a house, lot, motor vehicle, appliance or furniture shall be exempt from the payment of the documentary stamp tax provided under this section. (Emphasis supplied.)
- Amount deposited is withdrawable anytime;
- The same is evidenced by a passbook;
- The rate of interest offered is the prevailing market rate, provided the depositor would maintain his minimum balance in thirty (30) days at the minimum, and should he withdraw before the period, his deposit would earn the regular savings deposit rate;
Endnotes:
1 International Exchange Bank v. Commissioner of Internal Revenue, G.R. No. 171266, April 4, 2007, 520 SCRA 688, 697.
2 Rollo, pp. 178-345, with Annexes "A" to "L" inclusive.
3 Id. at 222-230; penned by Associate Justice Erlinda P. Uy and concurred in by Associate Justices Juanito C. Castañeda, Jr., Lovell R. Bautista, Caesar A. Casanova and Olga Palanca-Enriquez.
4 Id. at 232-235; penned by Associate Justice Erlinda P. Uy and concurred in by Presiding Justice Ernesto D. Acosta and Associate Justices Juanito C. Castañeda, Jr., Lovell R. Bautista, Caesar A. Casanova and Olga Palanca-Enriquez.
5 On May 2, 2000, petitioner acquired the entire assets and liabilities of Pilipinas Bank through a merger. (Id. at 223-224)
6 Id. at 223.
7 Id. at 224.
8 Id. at 225.
9 Id.
10 Id.
11 Id.
12 Id. at 223.
13 Id. at 225.
14 AN ACT RATIONALIZING FURTHER THE STRUCTURE AND ADMINISTRATION OF THE DOCUMENTARY STAMP TAX, AMENDING FOR THE PURPOSE CERTAIN PROVISIONS OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, ALLOCATING FUNDS FOR SPECIFIC PROGRAMS, AND FOR OTHER PURPOSES. December 23, 1993.
15 Improved Voluntary Assessment Program (IVAP) for Taxable Year 2005 and Prior Years under Certain Conditions.
16 Implementing a One-Time Administrative Abatement of all Penalties/Surcharges and Interest on Delinquent Accounts and Assessments (Preliminary or Final, Disputed or Not) as of June 30, 2006.
17 Prescribing the Guidelines and Procedures on the One-Time Administrative Abatement of all Penalties/Surcharges and Interest on Delinquent Accounts and Assessments (Preliminary or Final, Disputed or Not) as of June 30, 2006 as implemented by Revenue Regulations No. 15-2006.
18 Rollo, pp. 232-235.
19 Clarification to Revenue Regulations No. 15-2006 Implementing Section 204 (B) of the Tax Code, as amended.
20 Rollo, pp. 233-234.
21 Id. at 234.
22 Id.
23 Id. at 414.
24 Id. at 414-417.
25 Id. at 419.
26 Id.
27 An Act Rationalizing The Provisions On The Documentary Stamp Tax Of The National Internal Revenue Code of 1997, As Amended, And For Other Purpose. Approved on February 17, 2004.
28 Rollo, pp. 421-439.
29 Id. at 440-443.
30 Id. at 443.
31 Supra note 1.
32 Rollo, pp. 364-366.
33 Id. at 367.
34 Philippine Banking Corporation (Now: Global Business Bank, Inc.) v. Commissioner of Internal Revenue, G.R. No. 170574, January 30, 2009, 577 SCRA 366, 380, citing Far East Bank and Trust Company v. Querimit, 424 Phil. 721, 730 (2002).
35 G.R. No. 172359, October 2, 2009, 602 SCRA 316, 332.
36 Supra note 34.
37 Supra note 1.
38 China Banking Corporation v. Commissioner of Internal Revenue, supra note 35 at 331-332.
39 Rollo, p. 359.
40 International Exchange Bank v. Commissioner of Internal Revenue, supra note 1 at 698-699.
41 Id. at 697.
42 Id.
43 RMC No. 66-2006
Q-17 Can civil tax cases pending in courts, decision for which has not yet become final and executory, be the subject of abatement? If the amount already assessed by the BIR was reduced or increased based on the court's decision, what will be the basis of the abatement?
A-17 Yes. The amount of the original assessment or the court's decision whichever is higher shall be the basis for availment of abatement.
44 RMO No. 23-2006
SECTION 4. PROCEDURES IN THE AVAILMENT OF THE ABATEMENT PROGRAM -
4.1 Any person/taxpayer, natural or juridical, with existing delinquent account or assessment which has been issued as of June 30, 2006, may avail of this Abatement Program.
4.2 Taxpayer may avail by submitting an application for abatement (Annex "A") for every tax type to the concerned office, as follows:
x x x
4.5 For cases pending in courts, the concerned taxpayer shall fully pay the amount equal to One Hundred Percent (100%) of the basic tax before the same should be withdrawn, following the existing legal procedures.
x x x
4.7 Within fifteen (15) days after payment of the basic tax, the following procedures shall be followed:
4.7.1 Attached proof of payment (Revenue Official Receipt/BIR Form 0605 with machine validation) and the application form to the docket of the case;
4.7.2 Prepare Termination Letter (Annex B) for every tax type for the signature of the Commissioner of Internal Revenue;
4.7.3 Prepare Authority to Cancel Assessment (Form 17.58-ATCA) to cancel assessments for penalties (surcharge, interest and compromise penalty), following the existing rules and procedures in RDAO 6-2001, to be signed only after the Termination Letter has been issued;
4.7.4 Thereafter, the docket of the case, page numbered and with Table of Contents, shall be forwarded to the Office of the Commissioner for the signature of the Termination Letter, through the Deputy Commissioner - Operations Group, Attention : The Assistant Commissioner for Collection;
x x x
45 Commissioner of Internal Revenue v. Marubeni Corp., 423 Phil. 862, 874 (2001).