CTA Case No. 277 (Decision)

r, L 1 I I I I I� 'l I l t � ' I'A l.O uH1 u l 1.\~ A!>!>.t:A.L5 MAN1U. I ,~<:,~ TI Tl P�ttttoTnler,� � VC'IUI � rj�~' LlE T INTE L VENUE , eapon ent. - - x� � - - .... - � � .. � -x Il This is an app�al fr � a dae1s1on of the rts� pon � t ollec ~ f Internal even e, dated reb ������in 13, 1 ~6, a ainst, an e a ing fr , the petit! ner nlted tists rporation, the ount o 2 ,550. x, on six (6) imported cine� ato rap tc fll �� lus n a dltlonal au of s co r !ae penalty, or a total nt o r he take of revity e all not t er- un er tn its ntirety the partial st ulation of fact f the erties as a pearing on pages � 21 f th rec t will � ntton only of those fact ap- pearln therein htch el1eve are pertinent an ecessary in the firial adj d1catlon of t e case as 11 �� t � content� of the dditlonal unc tea e docu entary evi ence pretent d by th p&rt1��� The petitioner herein is a eat!c corporation uly or anlzed and ex1at1ng n er the lna of the Philippines. It atnta!nt an office at the tate ildin , izal Avenue, anila , and 11 en d in t � distribution f cine ~to raph1c f!l s for exhi it! n. 572

- � 277 - 2- It a peu� th t so e 1Jae 1n the year 1 49 � Alfred � ulla, Inc. , another do est!c corp atlon then 1ng, opuati an a1nta1nin a fil exc ange 1n anlla. an the d!atr!buto~ of the films produced in e ~nited tates of A arica , by agle Lion Pll a, Inc. , receive fr the otion Picture �~vice of th� United tate� y, atx (6) ctne atographic filma ith the following titleaa 1. -cannon City" 2. "He alkea y 1 ht" � uLet�a Llve � Little� ~. � ort est tamped�" 5. " arole, Inc.� an 6. sland.� 11 t � e 11 , except the laat one ere pro ce an ne y !laa, Inc. , an were dtstri te � oulle, c., for �xh1b1tlon ln theaters nila ~n n he rov!ncea, without the epa nt of t eel ic tax � t e � n he unt of � It ap, ars urther t at lfre � ulle, I _c. , ala rted tree ly r t � nt~� tates several .copies of. the f! � entioned above t i t p i � c eapond!ng apec!f!c tax aue an paya le thereon. y 11, 19~1 , the ale L1 n 11 a, Inc., filed a civil c laint ( an1la 1vil Caae o. 1 7 1, xh. �~ , pp. �116 I rec.) a � oull , Inc., or failure f the latter tore it to the for r ta hare t e receipts fro the exhibltio of th 573

"" o. 277 - 3- � �� c on� A a � lt of t. aphtc fil 1n this c tv11 a t!on , lf ed A. oulle, s dis� po �� all th fil � p ced � Eagle Lion 11 �� nc. Ut' to t st uct on o� 1ts ot er co any, the Unit Artists Corpor tl in t � u 1 ed tat a, the petit! ntr toe over 11 t � y 1� L1on 11 s, Inc., tnel lftg the lx (6) e n ato ~�P tc f! ms receiv :r the t�t�� a � the auth ~lt dt�tri� ut r the eof s. As regards the si ( 1� he auojeet f t , � instant c ntr - t �~ ib1 y t � � t er~ t t ere h f fur � h~ � ct. IX" of r J. - e et! io er t t 11 t X ( ) in 1 tt xtn 11 .he e-. ta f - ts ! ' lev � it c � n� f the reau f I ue. o. 107.) ter � earin , the Confera c taf � i r no for be llec r of Inte nal evenue y a nanl ue d.e!.s on l.t � th t at ������ en of .1 .00 � .. a ina t � � or ration It further re c � t at � 1 574

� 277 _ ar ed iately t o the usi: e ax D! s1on for the pr t asses nt of t nst Alfr d .. � 0 11 � Inc." ( Y. � ree.) � �1 - y I ev nu the res on .nt Collecto f n rn 1 di pprov d th t on of th c n- ferenee Staff, nd no 1 ns sts o th coll ct n of t he 8 � P c� 1<: t )( n t th pet t oner r �n. f nc � t~t 0 inst ant ap h th C r Ju . 6. Un r th f ct , s r d y t e � bl nt y v!d nc � t OV t n t d rt!sta C rp r n 11 or h p h cf et x 11 f nt rn c 11 ? t nly at on t dt t � ection l of t v nu C � ch o rn~ t. c /1 ( 1nder th ot v no t � s rt � t el � t ( 1) ) on 1 bl f r th p y- nt o he s c ftc t x n. th n t r ists Corpor t on i t c ine ato r ph c 1lmw n ch s cfc aeses aed , th n f. h uld � th t ot her hand , f corpor 0 0 1 tin 5 ' ~ r'J f&J 51;1..

c. � � � 277 -~ - �ny 0 t t o cat rles, or th h nd nt oll cto of nter 1 ah legally l i & coli ctlng t th 0� ft f r th p y - t1on' htch r ll indlc t1 t � oulle , Inc. an not the p t ti r t � Art ta Cor .rati on.J 0 t� ow , t p t!tion c:ine ato � h c: fil $ tat y? � tip 1 tion o t c 16, 1 7, h!ch p i S U$ conelu n r. T t a hie c. � by t 1Ln � 1 ion 1t or n1 n, 0 ' t!o !s n n rt � t fr: t �� rati cr � e r !- ti 0 y eontr - r c .no lute gle Lion 1 � I ( X� b- (( � "' p. 2 rec.) t ua no pr to c 1 petitioner is th 0h ( ) ein rP c film in controv rsy. I 1 n a 1 d n 1- ��ttl d r le t 1 juri let1 r of collet tng C t X on � cl � 5?'6 511

c o. 277 C. T. A. - 6 .. nited t t ea bases 2nd tn t llatione ln the Phi lippin er for !gn t r!tory. (Go hen Tee vs. r , 7 o. G. 269 , Suppl nt; o. 12, De<:. , 19 1J ur In1port xp rt Co., Inc. v � � o. L-2927 , J n. 26, 1951.) H nc � oods are re d f r � nd br ug t outs d of a Un ted �� y tate a r tall ti n, th is 1. port .. t1 n 1n t he ey � of th 1 � n t person auch re val and tr nsf r s consid red t � In the sen ca , it is itt y ot rt!ea t at it �� � oull � Inc., n t- t1oner er in c vd ix f 1 s1n estio fro th Un r y, ca �� t h fro th juri d t f t � lat er . c� � ou11� , I c. i �� a t ho ir t y t � c rre p c f c tax h r n, and ot t .) f r at t1ti n r 1 ld 1 bl or t nt of t � tx n c ph c 1nas ch s 1t cc d d to p a1n t pin! n of A y. f il.Jn, th approv Ubal o rabin , t n t!ng Ch f , v 1 n, ur u of Internal v nu , a f. for the Collect or of Int rn 1 v nu ated t b � 195~. 5 77 6 /C

lSI � 277 �r�� - 7- l il tl a per ae51l 0t ay � ld lia le f r the ci c tax � t r� n. ec l 2� Internal J � J tc re 1 r!ty t ax - � nt 1t ie t - er or t 1 �� � nt .) n t � ed u � ( � � � � 1:>2-1 th ts 57

� 277 -0- 1 � - tlo ion o h respo 0 1 ct r f In- � ternal v nu re y .reversed. t � petitio r ti t or or ti i h r y deel r d fr fr p t of th c f c X nd e pr lty in the t tal f u j ct o pre6iient app 1. th ix l ) ;r c i d y Al r � ull , 1 t Unit t y t ut ounc as cost � � r 1 � 1 57. 1 � h111 P n � I the result. " .. 579