CTA Case No. 2229 (Decision)

1 Rl .f'"l'l~UC OF THE PHII.Jf>l)l�N.ES COl RT C1F '1 AX ..t.PP$AL~ QUbZON CnV n spond :t X� ~ � � � � � � � � � � �' � J.hi 1� a ap_.,. tll tro. ;r s ;GI.l.de t Comm1 , t iW~i at \ol.1U1S ~tl~:tit.ton r !! :: l� ten." tho ~l..'UU t �1�16;' l8t :;1s de icior-.cr ine.t)im$' ta.x Eor 96&, ' c.lu. itlg tnt ~~$'t tltG.l:'a u �tti.a ..e 1 ~~ eo..."pO~ati~ l Ol'&a:ie � tn l1pp~e~ w t.h plae~ f s n~~~ nn ot. tee &lt�, sa c.t th hC:lJ.. i outv,, l <nta. owl .... V'Gl'd> tal:lila. fJ1a fact� o:r: the co.c.e nro s.tQt~ 1n t a p t . 100 . 1l 1. , i,. 329

��V. 'fbs.t tht\ above dette1E?ll~1 incom t u as~c&ss~t ftJl'O$ out. of th plteati0n P1 tba re~pondent o~ tb.G' n;, co11,lo.rato� 1Ae011l~ t � Jtat If of "tv t7-t1ve pe.:rof!nt upon tbe 4'WOU t bJ whien tb~ ~ble .fi -t inootao dc$!1 A(lt x.ceed one l'.un.dteil thous 4 pa os 7 �atl.d. tld.l'tJ�fitre p~r �= � ce-rd.o upml tne ~oant b;r ''h1eh tbe t~bla n&t tnnom~ d$. ono hUrtdrad thoustllld peao.s� _,P .scrib J$tt. 5lt3f . wtth_� u.nde:-- nsilubJ.1c e_t t~ble tnco l"G$p(ltet to the net o( "t1tion r for til~ seoQtld lJi~estv Qf ,968J "Vl. hat p tit1on& is on a Ctll. u~ "/~ .-~ -a91s ~ttd it: eompt~:ted 1~� ineom ta 11ab1l1tJ ro. tb~ -e,nt:tr:~ ~- ~68 tanble yoa;r �on th~ btl.sia of tllG <)ld 0orpo:r� t� -~ rat.� 2'� Qf 22;11 and 30~ preserined tuui~: sec- tion ot the .tlt\tional Int~1,.nal n~�~ Code4 prior to itl ~maadmcnt l:JJ R publlc 1-ot �o. St+31 J �vtt. '!hat 1 . a lett~ dat 5an,df9p7r0o1topsttJotd1t1totn~o� :PrX"_odtptlr,Jl c-o-n- t gttGt cty !tM and valldttr af "*.he Sielid d.el:iq'f;l0.tlC.J' 1r.,eotle tax a.o se ,stllo.n.ts :COl" l968 & s .ald 1ett-e.r ot p:ro~st w&~ ftl~d :vith tbe otf:toa or th~ respondent on Atl&;U t 7, 19?0; ''VIll . ~l�~t r.;t;l.Ja!'pf o2n0d,en1'tP9�~1 1 na lattttr dated t V'hteb was r ~ 1v~:d by 'I a 1�t .1ono$' o..'"l M,rcb 1, 1971 , d . ,04 pe:t...tion ' s, abov1a pro� test and rette:~�ated tl'\Or~ill b.is ~~~.,nd fat' tho paym .. t o.f tJl�:t alle.Jild tiel.i.n- <~encr incom., ta,"t l1ab111t;; tor th. t~xat1lo 1~u 196:8 1ft t.b:liA amoun� or P41,16,..)8t :u u a �. " !�hf) sol isau i.n th1s cas 1& purely t~na o � lav, 1. o , vha't!l Ol'.' n()t t he 1nor sea rates o co;r orat income ta ;; C$.Ol1"1bad. in R.epublie ct to. Jft31, �wbicb ttm ded s et1on 2lt ot the 330

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in 332

� ,f &c . I..uJ � - ~:!229 em .. ~tr . 333