CTA Case No. 629 (Decision)

REPUSLIC COUK+ C SPPEALS UL IPPINE

MANUA

A, RIEGO. TIANG GORGONIA GANABAN A.MAGANUA.SGNIA C. DAYQT GLORIA P. MALUNDO AND NINFA VIRGINIA AMORROSABEL B CARMEN . PADERNILLA. LYDIA Petitioners,

- versus C.T.w CASE NC. 629

REVEINUE COMMISS IONER OF Respondent. INTERNAL UMgUgA17/959

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DECISION

Fetitioners are seeking the refuna of the fixed

occupation taxes for the year l958 paid by them in the

amount of 50.00 ach. or a total of 400.00

The facts are as established in the stipulation

of iacts subnittod by the parties and che docunentary exhibits presented by petitioners. Since January l l958, petitioners have been enployed as pharmacist

and regietered mursee at the Insuiar Lunber Company

Hospital, Fabrica, Negros Occidental, with monthly sala- ries ranging from l.00 to i90.00, Upon assessment

by and demand from respondent in pursuance oi Section 1e2a 2) of the Tax Code. they paid in the anount of #50.00 each, or a total of P400.00, as fixed occupation taxes for the year 1958. Their claims for refund thereos having been denied by respondent. they interposed the instant appeal.

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C.T.A CASE NO. DECIS ION 629

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Fetitionerst ciaias for refund are based upon

the exemptlon granted by Section le2 (C) () oi the

Tax Cade, the pertinent provis ions of which we quote:

ness (l) Parsons subiect tonercentav CX EC.182.Fixed Taxes - husj R XX

sun due for the whole yeart pation shall be collectod as follows ef- fective Jamuary one. nineteen hundzed fiftyesevano the anout stated Deing the BOngccunatig.Texeson occu- end

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marine second engineers. pharnoctsts. regiotered nunses. chiropodists. tat. tooers,masseurs. pelotarts. Jockeys. professional actors or actressos. stage pertcrmere arid hosteases, fifty pesos. (2) Land surveyors. chief matee

bo exempt from tha tax tmposed in thts sec tiont (C) Exceptions,-The following shall

or receipte do not exceed two hundred pesos. (l Persons whoue zross monthly aales

The oniy Issue involved is whether or not Feti

tioners are exsnpt froa the paynent of fixed cccupa- tion tax. It is suggested, on behelf cf petitienere that the turm gaceipts" In the eforeecuoted codel provision inciudes saiaries and'inasmuch as the gross monthly salazies cf the petitioners did not exceac

a00.00, they were exempt from the paynent of fixed

occupation tax tn accordance with Section lsz (c) (i)

of the Tax Code. But. It is contrerily uzged by th

respondent that the exemption authorized by said sec-

tion applies solely to persons engaged in business on

which percentage tex is imposed and those otharwise

subject to the gracuated anmal fixed tax.

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S

DECION - C.1A.OO6

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it is to be observeu that the teras sales

nd geceipts found inSection ia2 (C) (i arocon

Joined by ehe word on . Feon the context of the

Stetute, we gather that the word or joins two dif-

ferent tezus which signify one and the same idaa. A

used in the utotute under consiceration. these tenne

refe to zeceipts of persons who are engaged in ousi-

B659s Nowhere tn the said context can we find a Justi-

fication for the ouggestion advanced by petitioners

that the term cecoiptaw in aaction lsz (c) (l) of the Tax Code tachudes Salartes. Such suggeation ts a

strained and stretched interpretation

The conclusion that the term "receipts appe ar-

ing in Section le2(C i does not oabrace selaries

is buttressed by the fact that the whole Saction 182,

as anended by Republic Acts Nos l6l2 and l8suo is

mnely a composite of what were formerly bections ls?

19s 201 and 202 oi the Tex Code The mgdifications

effected by these two statutes consist aainly of b-

creaoe in tax etes and the enlargament oi subjects

of taxatiom. Except for the word gonthiy. which is

different irom "guarteriy the phrase "or receipts"

new aceenduug and the anount two hundred . re-

duction of the aum of four hundrod-iiftyo Section la (c) (l fs an incorporated copy of what formerly was

Sectton la2 (A oi the Iax Code. It must be noteo that under what was axmerly Section I62 (a Fer ions

whose gross quarterly sales do not exceed four huncred

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CT..CE N69 DECIION C

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fifty pesos# were exempt fron the tax inposed in this

Section. Thfs section was captioned Fixed tax upon

bueIness". Obviouslyo the lagislative intention was

to exenpt fron the fixed tax only such persons who

were engaged in Susiness. Thereforeo when Section la?

(a). with the modifications already adverted to, was incoxporated as Section 182 (c 1 the Tax Codg by Aepubltc Acts Nos, 1612 mnd 1856. the legisletive tn- tention to exenpt froa tha fixed tax only persons en

gaged in ius iness renained the same, The addition of

the term receipts to the word "saies doeg not make

any difference. The resulting phraseology "sales or

zeceipta" es smbodtedin ection i82 (C (). should

not be deened change of law unless there is an evi-

dent Intention on the part of the legislature to make such change (see Taylor, et al.V. Sowker, lll U.S. i10, l14). Zn the instant case, we find no congres- sional intention to effect such change, for the adced term receiptsconveys the same meaning as "sales

Petitioners are not entitled to exenption from

the paynent of oceupation tax on phwrnacists end xe-

gistered nurses for the reason that thetr professional

servieas were not devoted exclusively to a hranch or

tha ssrvice of the Governaont af the Philippines or

were applied undex Its directiong nor were same en-

tiraly devoted to a religiouao educationalp ox chari-

taole institution. or hoopitalo sanitarium, or to a

sintlar establishnent not conducted ioz private gatn

see 5ection 182C7 of the Tax Codee

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C.T.A.WASE NO DECRION- 6

Cbe

Finally. it is a well settled rule that exemp-

tions from taxatton are highiy disfavored in lawy ad

he who claims an exoaption must be able to juutify

his clatn ny the cleareot grant of organic or 'statute

Iawe An exaaption fron a conmon burden cennot be per

mitted to exict upon vague inplication.n AsiatlcFe

teoleum Co. V. Llanes.49 Phil. 466 House V. Posadas.

53 Phtl. 339 Philippine felephone and Telegraph Co

V Collector of Internal evanue, 53 Phti. 639 Col

lector of Znternal Revenue v. Mantla Jockey Club

RGNO-8755aEch23195 I In the caso at

bar. petitioners have failed to Justify their clatme

for exemption by the clearest grant of law

N VIEW QF T FCREUOING, the decisions of res-

pondent denying petitionere clatns for refund are

hereby affiemed. with costs ageinst petitioners.

SO CDENED.

Manila, August l7, 1959.

Fresiding MNLTANU Judge WE CONCU

Usociete WA A Judge A

In the result. N Olonl

Associate Judge

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