CTA Case No. 2422 (Decision)

Rl�:f" t' !H tC OF THF PHILIPPI ~EB Ltlf:Wr C> F TAX APPEAL8 OUEZo,� CP"V I PHILIPPINE MATCH CO . t :t~ .. , Petit1oner, - versus - Co T.A. C .SE NO . 2-422 C0l11HISSIO NER OF INTERN.t 1 REVEN1JE , Respondent . X- - - - --- ---X D E C I _S I 0 N Petitioner , a corporation filing i ts income tax returns on the ca lendar year basis , was re quired by res pondent to pay the sum of Pl64 , 707 o98 as deficiency income t ax and delinquency penalties for the ye ar 1968 . The defi c i ency ~s s essment is due to the applic a tion , effective July 1 , 1968 , of the ne1.r corporate income tax rates of 25% and 35% prescribed in Republic ~ct No . 5431 , l�rhich increased the old r a tes provided in Section 24 of the Revenue Code o Section 10 of Republic _ct No . 5431 pro vides t ha t the increased rates of corporate income t ax prescribed in said "~ct 11 shall ap ply to income for t axable years be ginning after June 30 , 1968 '1 � .a.s petitioner is filing i ts incone tax returns on the calendar year basis , the ne1.r rates of corpora te income tax should apply to its income be ginning January 1 , 1969 and not July 1 , 1968 Q Ho\-Tever , r~spondent contends tha t the nev: r a tes of corpor a te income tax should app ly to income of all corporations effective July 1 , 1968 , whether or not

DECISION CT.11. c. SE NO o 2422 - 2...1. they are calendar year Gr fisc a l year corporations . The issue raised ~n this case i s already well settled. In :grevious cases involving the s ame issue , it liaS held that the increased rates prescribed in Republic � c t No . 5431 are applic .. ble to income of calendar year corporations beginning January 1, 1969 and not July 1, 1968 as interpreted by respondent ., ( The l:ianila Times Publishing Co . , Inc . v o Cormnis s ioner of Internnl Revenue , C. T._ . Ho . 2263, December 17, 1973, certiorari denied in GoR. No . L- 38154 , Nay 10 , 1974; Zamboanea \Jood roducts , Inc . v ., Commissioner of Internal Revenue , C.T �.A . No . 2053 , June 3 , 1974; Colr;a te Palmolive Phil o, Inc . v o Cormniss ioner of Tnter - n� a 11":)-.evenue, � c~1,,.,J~ . No . 2293 , June 10, 1974; Philip - pine 1viation Corp. v., Commissioner of Internal Revenue , C. T._-l.., No . 2195 , ~UGUst 5, 1974; First Insular Bani-: of Cel:;lu v . The eommissioner of Internal Rever:.ue , C. T. A. No . 2262 , AUgust 29 , 1974; Tabacalera Insurance Co . , Inc . v . Commissioner of Internal Revenue , C.T .A. No. 2031, Hovember 20 , 1974 . ) 'j. ~.iEREli'O.tS , the decision appealed from is hereby reversed . No costs . SO ORDJ�RBD . Que zon City, February 19, 1975 . ~ Presiding Judge_ � .�~Ge?a rrEfJ>- hNIS 0 R...l.LV L -J/) . Associate Judge / ~ CE~ ~..1~0...rr. L � (J;~VAJ.�,, � ~...:.. ..b..ssociate Judge