CTA Case No. 2230 (Decision)

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HEPURLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY

PHILIPPINS APPLIANCS CORPOHATION, Petitioner

V10 CTA CABE NO, 2230

COVMISSIONER OT IWESINAL KEVAUUE Koupondent. 1[311as

DECISION

Petiticner appenled from the decisiou of renpondent

holaing che former liahle for the payeent of the sum of

31,515.+5, a deficiency inooma tnx nnd deliquency

enities for the period rom July t 1968 o July 31 1968

Petitionor is keoping its books and records on the

ficoal yaar hasis, its tsxable yoar comencing on August

1 and ending on July 3t of tie following yoar. Por the

fiscal yar 190708 gust1 1967 to uly 31,1968,1

paid its incoe tex undor the old rates of 22% and 30%

proscribod in aaction 24 of the Hevome Code, prior to it

anendment by Republle Act oo 731, ond pursunnt co Beo

tion 10 or said Act whien providaa that the "prowision of said Act shall apply to ineome for texable years begin- ing fr.Jue 30,1968. However, reapondont compntad

the tncone tax of petitioner ior seid Tiscal year based on

the now rates of 25 nd 35% vith roapect to its income

boginning ly 1, 1968 As n rosult, respoadent assesned

Ropublic Act No. 5431 increased the ratos of corporete

1eom x 7om 22 nd 30% to 25% and 35%

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DECISION - CIA CASH #0. 2230

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against potitioner A deficioncy income tax of 31,515.45

inetusive of intereat and ponaltles.

Petitioner roquested reeonsideration of roapondant

decision on the ground t et it is not mbjcct to the inereesod

rates of 25 and 35 under Regublic Aet 1o. 5431 effectiv

July 1, 1968, but only fro August 1, 1968, as the lattor

date is the heginniag of its taxabla yaar artor June 30,

1968

The sole issuc in this caro is purely pne of lmwie.

whethar or not the incroased rates of corparmte income tax

prescribed in Republie Act No. 5431 shomld aaply to peti

tioner a income earned from July 1y 1960.

As tho taxhie yenr of petitioner bagins on August 1

the beginning of ite taxebie year arter Juno 30, 1960 in

August 1, 1960 and not July 1, 1968. accoraingiy, it wa

srronooua fer rospondent to spply the n corpornte income

tax vatea to the ineoao of potitioner fron July i, 1968. (Ses Manila Times Publiehtng Co.y Inc. V. Corm. of Int. HeV. CrA 0ae o.2263,Dec.171973,Cotii 4i n 0

o-L3815a101974.

WEBi7en ths dooiaion of rospondent ia horeby revorsad

withoat pronouncement an to oosts.

WR CORCUR Quezon City, March 31, 1975: BO ORDanED. T Presidinc ACMAN MUNAL Q Am Whage

IS0 Asaociate Judge AA XA ACARE M MARC

RANON L.AVANCENA Asaoelato Judge

Cm

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