This case has been cited 1 times or more.
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2005-06-08 |
CALLEJO, SR., J. |
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| The petitioner avers that the reliance by the CTA and the CA on Section 4(e) of Rev. Reg. No. 12-80 is misplaced; the said provision merely authorizes the determination of the amount of gross receipts based on the taxpayer's method of accounting under then Section 37 (now Section 43) of the Tax Code. The petitioner asserts that the said provision ceased to exist as of October 15, 1984, when Rev. Reg. No. 17-84 took effect. The petitioner further points out that under paragraphs 7(a) and (c) of Rev. Reg. No. 17-84, interest income of financial institutions (including banks) subject to withholding tax are included as part of the "gross receipts" upon which the gross receipts tax is to be imposed. Citing the ruling of the CA in Commissioner of Internal Revenue v. Asianbank Corporation[18] (which likewise cited Bank of America NT & SA v. Court of Appeals,[19]) the petitioner posits that in computing the 5% gross receipts tax, the income need not be actually received. For income to form part of the taxable gross receipts, constructive receipt is enough. The petitioner is, likewise, adamant in his claim that the final withholding tax from the respondent bank's income forms part of the taxable gross receipts for purposes of computing the 5% of gross receipts tax. The petitioner posits that the ruling of this Court in Manila Jockey Club is not decisive of the issue in this case. | |||||