CTA Case No. 75 (Decision)

REPUBLIC OF TRE PillLIPPINES COURT OF TAX APPEALS MAN ; - 720

; ) � t, l 721 ,.

- � - ; � \ � 722 \,

� � -- ; ' � 723

- � T. A. c� � 75 ; of the . tion 1 Int rna! evenue Cod , which r a as follows: .. � 264. ~h.;:.ai\lll,.;;;j,e~~~~~� cyt in public forests. - Exc pt otherwise speciall y provided , th following charges shall be coll ct- d on ach cub c meter of ti r cut in any pu lie forest or for st r - serve in th Philippin 1 wh ther re- .oved therefro or not1 � tt(a) On ti er in the first group, not including ebony, cama on and ol v stri ped of sapwood, thr p so s and fifty centavos . "( ) On ebony s ripp d of ap- wood, ~ six p so � (c) On c a on stripped of s p- ood, five pesos� ... fl (d) On ol av stripped of sap- ood, four p sos. ( ) n t er in the cond group , t o pesos. "(f) n ti iliar in third not !~eluding firewood , ~ ~~�~ centavos . �(g) n timber in the fourth group , not :J.ncluding firewood, sixty centavo �" " EC. 267. ad m a --......~,-..;;,;r;:~n~u-.e~n-.c.,..- here orest pro ucts a u y cut or gathered i n any public forest without license or, if under license, in violation of the terms thereof, the charges on such pro ducts shall be increased by three hun- dred J2.tt centu � If forest pro ucts halllOi removed without invoice, or upon r moval , shall b discharged ith� out permit from boat, c , cart, or other eans of transportation , the �charges shall bf in<;reased by tw nty- five per centu , and if, in any c ase , the proper charges upon forest product are not paid within sixty days after the sam shall be due and payable, such charges shall be incr a ed y t enty-five .her centum; Provi ed, h2!� ~~ That t e Collector of Int rnal Revenue ay, in eritor!ous cas s, wa v the urcharge of fift y per �2ll� �

� .. - ; � �1 .I � r �t J 0 725

� J � 726

"' ., � 727

L ) �f � ... 728

r """ ... 1� � '1 OJf f s ' �� c 1 a . 1 -� 1 $ , � � 729

� � � � .) \ .. � � , 730

DECISION -- C. � A. C E ..1 � 75 ... 12 - strictly speaking. the� pric which t h � Government charges for th& pr1vi� le ran. t cone s ion ir _ t ex- ploit th public domain , r ather than a ax i o to support the n _raJ. s rvice of go rnment." (Vol. I , Repor of th ax o i~ i nl/..1 7.. p. 9a0s; posened leo page 8, emorandum fo:J:" nt.) For th � prot ct on an cons rv tio .of h -pub- lic forest , th utiliz_ tion of which is xpr s 1 limite by the onstitution to 'Ci izens o the Phil� ippin s (Art. XIII ,_ ec. 1 of the Con it _tion), the l I Tax Co ni sion r co ended th t the _urch r or p nalty for cu ti g or st pr oduc _ wi hout lie nse or in violat ion of th t r s of t h _ licen b in- r crea ed from l - ( ec. 1514, d � )0 of the re ular ch r es due. hi t dation was I adopted by ongress in Section 267 of the Reve .u Code. But hil th forest charge i po e in Chapter V, Titl VIII (3 c � 262-273} of the avenue Code are 1 in the natur of prices f or h sal of for st p a- ducts, ongress has se n fit to maintain the class1- I f1 c tion of for st c ar es as national intez:-nal revenu taxes. ( ect.ion 18 , Nayio 1 Inter al ev nue j Code; fo erly Section 1438, Ad . Cod.) Being an int rnal r v nue tax, the collectio of fore st charges is fo:rceable only in th same roann r s other internal r ve u taxes. (Op. ~tty. Gen ., Oct. 27' 1922.) Und r S ction 315 of the Revenu Code ( fo:rnrerly Sec. 1588, Adm. Code), the Government has a lien on forest products on h!ch the �orrespond!ng fo est 731

' l� t ., 1 73 2

� . ... . � v - ... f l� 733

- � �15, Regs . No . 85 .) �. es y or d not have licenses to

.,., - 6- iv � 2� � 735

- 17- the � tt t e h r n p it ner !E~~~~~~~~c~own-~ .....,.~.,. of the logs involv in thi !" it 0 th s nt, he � c: � 1thout di ,�ect 26 of the T x &u co 1 �( r nt.) It is a ~itted y spondtnt t at t e d ty of � urln disch rg t f0 0 t n""l'\l'ln ed fro poi t. of c of estination vol e upon th , 1� t t taki g to co sid . ion t 0 17( ) gul tion o. 85 1~h provid � '7 3 6

. � � f 737

. ~ � , � the notation was made as to the 738

."'� -.-~ � '~ i '� � f � l 739

.. � , � I - 70

- .. ' '7 4�. �t - J._

# t . 742

.. .- ) 743

.. .. ........ ' ... 744

. - � � 745

� � I f t 746

� - t t x. � l � 747

.- 29 - l 748

'. .. -� - �n h t yt of 0 t ' :t1 � �� ,J n.. � ' t 749

,1 IJ , 8 / � � � � 750