CTA Case No. 3606 (Decision)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY GERMAN CLUB, INC., Petitioner, - versus - C.T.A. CASE NO. 3606 THE ACTING COMMISSIONER OF INTERNAL REVENUE, Respondent. X- X D E c. I s I D N T h .i f:"~ j 1 o 1 v r::-~ ~; c:\ c: 1 ,;1 .i m �f o r�� ,,.. r::> fur 1d .i. n s t:..i. t u l". E~ d .i. n th:i.c,c, Cnur.. t by pr~tit.i. n nE'~r.. .i n t i...,E? t. nt.;c~l amount of cr<�'" r. ~ :: ~ F' :':.i'? c; "! � .:!;Cf f ~, ~' '� r-:�~ : ~; t !-.'-? I'"<::> ,,.. ' t. ''" :-: p ,,,, :.i.c:l , r::> p r��r-::� n t : i n q '%. �f r. om <;:; ''" 1 c-::~ o �f well as the 7 '%. gro ss receipt from sa le of di s t i l l ed to 19"78 inclusive. Pt-!t..i.t.i. o nE~ l'" i.~-; c:\ c::lom E�?~:; t .i. c non ....�s tnc:k and non ..- . pi'"Cl'f .i. t I'" f.:~c: t r" E~a i. on i':l l cO l'" po r� '"' t i. on a nd e:-:.i.::; t.i.nq undpr� and t:ry v.i.r.. tu r~ o �f t.hr::~ l a w s o �f the

DECISION CTA CASE NO . 3606 ,., .. ::. F'h:i.l:Lppinl�:�:1 ~::; !, ~--J:i.t h p l�� i.n( :: .i.p.o.\1 o f f i.C F' ,::\t F:i.ft. ll r-- luur� , E: u 1�� nv :i. l :1 .::1 B.l.dq .. , St.. ~ l''li:'\ k <:~ t. :i. ~ 1"�1c~ t. I' 1J 1��1;.;~ n :i. l t:\ ( F'a ,,.. .. 1 , F' F t �. i. t :i. u n , i:'\ d rn :i. t .t:. r:~ c:l in p<:~~ag~aph 1, An swe~ ~ pp . 1 ~ nd 18, CTA r � ~c .. ); while ,,..F�~spundE�~nt. :i. <:; t . l�lE' � (lt~ t..i.nq Cnr::n r:i.�;:;:-; .i.Uil E' r�� of Ir1 LP I' �� n.:~l F(E'VC:'n UE! vJhu hu l i..i ""> CJ �f �f .i. c E' i'\ t thE~ 1\l,:;~ t .i. un .-::~ 1 CJ �f f :i. c E' El 1.1.i. l.d.i.ng of IntPt �nal R r~v c=.~r1ue a t D :i. l .i. rn t\ n , U1.1 .::~ ..: u n C .i. t : y � ( p.::\ 1' .. r=�r.:~ t:.i.t:i.on, <�'l ei rn i t tt~ r:l ~) Dnlc:~t.i. m r:~ .i.n t. l�1p ye.':\1�� .1.90.1. !' r�r�?s;pc:rnd E' nt Acti r.lg Cum m.i. �:; ~; :i. un P r � uf In tc-::-~ r � nd 1 HE1 V E' nUI~ , through :i. t. ~;, Ht:'q .ion "~ l h:r:~v~:~rl UC' n .i .,:; t .l'"":i. c t : . (J �f "f .i c:: c~ r � 0 f !3uu t h l'"li:'\ n i 1 a, fr:Jud dn d CJthE�?r � l'" l'?fr�� r?~; l �l rnr;'rll.: <=;; i'~r ll :l 11.. 011 CJI' � u:~ �:=; l'�� ec:r-? .i.[.>-1.:.'"; fr �u rn <:>t.\ll";! o"f cl .i. c , t-..i ]. J. C-? cl "f P r � mf:�~ l � l-~.r~cl ur� pu ,,..~:=; u a n t to UE�c: t. .i. ur1 19 .1. -�- (.) n f t. l�l E? T a:< Code, co vE�~ r� .i ng the yPars "fr �u rn 1974 to .1.978 inclusi ve , .in the total <7:\ illUI .Ir�l t-. of F' ;5~::':' , r:;::~7 � :::;:9 .. (Pars . 3 & 4, Peti tion, c:\clm .i ttt?d i n par��. pp. 1 to 2 a nd 18, CTA A~:; c:: on ~;e q uen c: e of ass1-:;, ss rnen t , pE�t.:i. ti.on e r� on Augu ~.; t 19131. paid t h e s aid a~.;s<�:?ss rn e nt. unde r�� p 1�� ot<::~st i n th e:~ t o t a l a mount of Ct

DEC I S ION CTA CAS E NO . 360 6 .. :. ( C;~ h�;; , C ~� C �� l , D, D� �l ~� D..... ~? , [ , E......1. ~ E- 2, F, F- 1 , F- 2, G, G- .1., G -2 ~ 0 . 3, H, H- .1. a nd H- 3, pp, :5.1. ��..�6.1. ~� t:T�r:') 1' '(2 C, ) Cl n :July .1.0, l9Ul, pE~t..it.:i.onE�r- filed with t he respondent office a c laim for re fun d :.i.n t h r;~ ~::; .:.\ .i. d to L<:\ l <:ltnut .tn t of F' ~)~? , c7::')'7 .. :~::.9. ( F' i':\ I'" � 1 (l , Petition, 0 rlmitted in par. 6, Answer, pp. 2 and .1.9~ C T f1 I'" F~ c . ; ,'� r, (�? ''" l <:; o F >~ h , (.1 ~ p p � .q.fl. .... IJ.9 , C T {~ ,,.. e c:: � ) pt-�t.:i.t: .i.un e! r.. ' c.:; c: l i�:\im �fot .. r.. E-~ fund~, thr:' latt.c-:�r on 1'1dt"�ch F' u '"� (:~ cl I:1r.:~ �f u r.. E-' u �:; f o 1' .. C�:~ c,:; o l l l t �..i.C) I l :i. <;; \�~ i 'lE' t. J� lc~ I'" 0 r. I l 0 t p E~ t :i. t .:.i. U I 1C t�-� l. ~.; F' rl t : i t J E' ci t C) .i. t. <=:; (... J. i::'<.i rTl f 0 I'" r-f�? f Ll n cj .i. ,., t �. h E~ i::\fllUI t 1�1 t. o 'f � F' ~5~:-~ , '7' :~::. 7 ::~; 9 p i-:\ .i. t.l h y pt:' t�..it :i. ()f'l E�~ r- to t .h.-.;~ r.. E' ".; p(J f"l cl E~ n t�. hy \'>~<'-" y u t c <:~ t:.E~ I''E�' r �:; t a )-: pur� s:; t.t <."-n t t .CJ He c: tion J C? :J ��� () u �f tl�l E' Ta ;.~ C::( :J ci(?. �r 1�1p :i. �:�;�,:; ur! .i ~:; nut u n <:'! u �f f :i. r-s t i. mp I'"Ps.;~:; :i. on � In the�:~ ~1anila Hotel Co r pora t ion vs. Commis s i o n er of I nt e rnal Re venue , F'E�! I'J I'" Ui':\ r-y .1. U, citing Man i la Go lf & Country CI u b, Inc . vs. Commissioner of Internal - Re v enue , CTA C.-::\SE~ No. 26~?0, Marci�l 2 0 , 19T7~ t h i s C::ou r- t. h r.-:�1 cl :

DECISION CTA CASE NO. 3 606 �-� 4 ..... h .i :.=: c a �.:: e .i s n o t 1-'4 .i t�� /1 o u t- a p r e c e ('/ e n t- � In th ~ case of ffanila Golf & Country Club, Inc. vs. Commissioner of Internal Revenue , CTA Ca �.=: e No. :?6:.?0 . Nar c h 20 .. 19 77.. t�h.i s Honor a ble Court held a s follow s : Since, a:.:: :.:::fated aboi.ti.'.� thf.> Of fi c e of t-he Pre s ident ha s ,.::o n1'.irmer:.l that Sf.>r.:: tion 42 o �f Jlo u::. e Bil.l No � .1873'.~ .� no/.1/ 1\ e pub .l i c A c t No � �6 .t 1 0 .� i n :=: e r t i n q Sec tion .1 91-A, wa s one of th e S ect ion s i.tetoer:.l by t/1e Pre :.:::.ir:.lent .i n h i :.;: ~I e t 0 m1.? �.'~ s r1 q e �::1 a t f ' r:.l Au q (I ::.:: t 4, .19{.9 .� vet-o.ir1q r:: f.'.>rfa.in :=: er::� t.ion s o F t h t' s a .i r:l b i 1 .l ( E .Y h � " N " ) _. i t h As n ot been s hown that the President's vf.> t o was overridde n b y t h (:.' r f.> q u i r e r::/ n ( I mb e r r) �t ~I 0 t e s Fo r ~~ etoed l:>i.ll :.> a:.:;: provir::l ed .in ::::e r:::t.ion :?O (.l) _. llrtic.le III .� of the .1935 Con s t.itut1on. The r eco rd s or th~ case do nof s how that two- tllird :.::: or ear:.~h ll o u :::: e of Co n qri.'.>SS voting se parate .l y agreed to Oi'er.-�:ome the Prl.?:.::: .i de nt ��.;: ve �t.-o of Sec tion 1 91-A. RP~ponde nt ha~ n �o> t a 1 1 f.' q e cl ~�) ;� 1.:.> v en i n t i mi r::/ a -t- e r:.J t h ;:~ t t h e P r e s .i r.:/ en t .� :=: v e t o o F Section 4 :? or the Conso lidated Ta x Bi.ll was o verridden b y th e r ,, q u .i r c r::l n u mb 1.'.> r :.;: o �t ~~ o t e :::: o 'f v e toed bills. Ina sm u ch as Co n q r e :.::: .:::: d i d n o t o ~~ 1:' r r i r:J e t h e pre s idential v e to of Sect ion 19.1 - A, t h e provi s o in question n ec e ssa rily did not be c ome a laN. Con seq uently, Sect ion .19 1 - A ::: hou.ld not form par �t� of the Nationa .l Intern a l Revenue Code. No t e s c a p�.i n q n o t .i c e i ., t he arqu ment or re s ponde nt that "a r es o.lut.ion .in ravor or petitioner t<l o u .l d me a n t�h e .l o ::: s o f. m.i .l 1 .i o n s o1'. pe :.:;; o s to t�h e qo~~eri'iinent .� ar1d C".. .�.)

DEC I S I ON CTA CAS E NO. 3606 t"l!ere t�.l<.>u.lr::l b e � (J e.l(Jgt'.> of c.la.im :.::: for rp fund, for noNhere in t-he Tax Code can you find a provision t-axing eat-ing places e xc ept" in "t:l!i:.::: :.:::ec:t .i~.>n. " Nhi.le .i-t- .i s o �f t- 11 "/:" mo :.=: .imp or tan c e L h ;:~ t t h 1.~ Government s hould not resort to a p r o p o :.::: e d p r o 1-' .i :.::: .f o ,., o 'f "1 r e ~~ e n u e br� .l.l 1-l/l ! .i l.'.~ h did not- br:?,::ome a .l ,'ll-<1 t: enhance t-he '.: o.l.lf�t'.': t-.ion o'f' r o T h e .i n a n c i a .l e .Y .i e n r::: .i e s t ; � .\' e :.7: � of' the Goi.Jernmf.:>nt al''f'ord no j (.!:.': t".i1' .ic: a �f.'.ior, for :.::: u :.;� taininq t-he i-'l :::�;� f.'.'::.':.'.; ment of a tax .lei.J .i el.'.'l under a s t-rained construction of a .faN~ 1/>( Jt::: h .le:.:::.::_; <Lncler a prov .f.-.;� .ion of a r eve nue b.i.ll Nhi c h ha s been v et oed by the Pre sident-. 1-1 a 1.' .i n 9 r e a 1.'.~ he d c:onc.lu ..- s .ion tha L: a. Sec:t .ion 4:? o1'� llou::;:e n,�.zl No � .1. 873'.?, no1�1 P.f:!P'lh.l.ic fi,::: L N o � <':'� .I .1 0 � .i n ::: e r t .i n 9 S e ,_-�: �t. .i ,, n .1 '.) .1. ..... .1.1 b l.''f' l.<ll?f.'.' T'I Ser:::F .ion s .l '.:J 1 i:'l n l.:l .1'?::? of the National Internal P.evenue C , )de , /.</ ;:1 :.'~ 1-' e t o f.' ,.I b y t: I 1e P r e :.:: .i d t.'' n t .i11 hi :�.;: lle to mes :s aqe datt.'.'t.i !lu qu:.=:t 4 � .1.96'.?_: b. Conqre ::::.::: t.:lil.'.i not:� 01.1er�.... r.ide t:he pre s idential veto: and c:. se .c .t.i(.>n.. 1.?. ! :~�:.Jl d/.t.1 n o.t.. /.;>~"t.'.'.' .f.>T~ e ...... . a.... ... 1a1.<1 and s h ou .T '.f ..... no.of.' t /1 er ('l'o 1':.-f:l....:....... form ...r'. ~�. r ot.�.... . .o .t .... t . h I.?. lj ;:1 (i <::>T.!..a 1.. . I. .u tf'! .!'J} ~~ / ... f(e 1<eru.1p . C(>,:;!e .: " IN VIEW OF THE FOREGOING, respondent Commissioner of Internal Revenue is hereby ordered 3

DECISION CTA CASE NO . 3 6 06 ..... 6 -�� to refund to petitioner, German Club, Inc., the caterer's tax paid in the total amount of P52,937. 3 9, without interest. No pro nouncement as to costs. SO ORDERED. Ut .l<�:�?z on C .it:. y, t1 E~ t .I'"O lvl;:,\n .i. l "'', Uc t .uhE? I'.. .14, l9BEl . WE CONCUR: ~ C. ROAQUIN .As sociat e Jurlge / AMANT E F' ,,. r::-~ ~, .i. cl i. r 1q ,J u d q r.~ ::;;:y ~\) Al' Z. (.', '"i <:; nc: .i. d t .E�~ ,�Jt.l d <.J E�~

DECISION CTA CASE NO. 3606 7 CERT I F I CAT I 0 N I hE~ I' C' hy CC�:~ I' 'i:.: :i. f y t h i':l"l". d F~C .i. <;:; i. Cll"l l'" f:~i:IC h F'ci i:'\ 'f t "'' I"' r1 UE~ C D rl <;:; u 1 t .i':l l � ion i'O.I fllCJI 'l C'l t h p CTlE'HI i:Jn 1"'~:; U f u'f ()p p E'i�'l l c,:; i fl ''" c: c: o r-cl i':l n c r:~ wi t : l�1 Hc~c:: tion t ::~:, () l�� t.:i.c: lc::-~ VIII Df t .llF' Cu l.l "'; t.:i.t.ution. AMANTE F' l'.. f�~~::;i c:lillCJ ,Judqe Court of Tax Appeals