CTA Case No. 1702 (Decision)

2l.EPU!H.IC OP THE PHILIPPINEI" ' COU n:r OF TAX APPEAL8 QUEZON Cl'R l._ - . ' ~ ' . .. . ~- . '~' "'- ~''~ ' ~~~/ � 7'~ 17 - \1 . ' - - - - - .. - ... ......... ... .1 t t .� .' r 1 �0 r' 1l 2

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12 *ln or wbo u t. the 11cnth c t IS J-� o:t 1 tf�' . ~ 1'9,St ilL t l . b:J a, otte � -o b ga �ng u t t '� .,, the Boer � rtJt Di.rPotor C.b plat t ha. t .th"t WJ:re spfl!ndlnl .toQ .. ueb 1 ~b . l t of e();f' ;t .ion (m.� 12, t.lhfl. ) bJ ~ay o� r~p�r(t!tu1te'ttoo esp ns ou ot tbe!.r: o � p<rck tv. ��'tne � � s�rt 1 � part.iou.w .� b e to .flnte.rt ttl for .11n 1 �1tc:rs, pu- !c:ulel"11 tho trt\11 � th~.f al"� lY1n ttt'� tenal& and a l~J!"a of tkeitt � b � � not �.nlr In tbtt Pb111pp1n � 'but o b:r. oad .(p~. o10t2t1. �11J3.~Jo,a...1-249u1 ~at.�.t-.n.). , al by .rGsolut1on So M:t 1) a.cb Qt tb~ � �. l!l��r� �or tile Dca.rtt � a utbol"! e . to lt .� \f r pre.... . eat .� 't! n allowance ot t '500 -.00 a o th, b . 19-,a, 1.n.~ng t"' . Januar1 1, u)' ct to th . �t()ntl!tto:o that thtu.Je .t� ~em ts .mt . to be i~C3lud. � 1n t!wi:r tnr.U.v!.dual 1neO!n ta� :un& and It 1 . up. t th to subt.tantl- te th� expend1 tur� thtrr~ot 1!1 ttlt!it� 1nd;tvt.... re turna toAf nPtaofn"iiofll�&t~;r:�o. .n. * du 1 �� : ( t>&att.mcmy 1.2� test1WJ:.nJ o 12,-, n1 J;J, p., Hl2t t.~.n., en4 t st111ony of 1:1'10 G~roM o, p., t �'~ .:n.) ., t tbe eate ot women dealers, the wo n m ~... &f tb � &oo.rd ot DtbJer�oitn.,re�. n�tt' the: O<ne.� bo ente.rt~d. m~n b . G (p. , t37, . t ���.n. ) . (f .ti� ticner's � :.!~eo :mhtm, p._ S.) ttl� tu �a c.r a c 11 ote> � ot lat.,nlil r;; "'nu~ � Goodr:t � Int raatton-.1 Subbe.t Go,. (O .N ~ l'fo., t- 2226,, U o.. 22, 967) rtn;spondent d1 llow _ t r-ti ent portio-n foll 1 203

DWC:t...I mi .... ' Ct\51 os. 1?0 &- 1.10, 13 If tb4t ~a � ua� . re:J� .tt. a.� h N'\117 n 1n...- �CUttJt~ d, rec.1pts o ch1 ts ww � h ;v~ en 1 �su b1 th ~nt1t1tts �to � bien th p J�nt ��n ade, antt 1t woultt _bav n cu1.r ro.f' Goodl-iob or tftce.ra � 'Pr"OOn~..tl' _u � l!'� cetpt ,. Those taeued 1"&1d ottt �t" rely tte �t t th: i;r tbat th:e�y had !n.ettrrett 'lm~ ta e:1.id: exp .n " s: .; Tl'l$f <h'> r~ot establ1�b ,.,.._ nt o:r sald all~& .d. xp n _� * to tb . ntibles 1 �. wM4Jh. t � s . are sa1 to have �n incu:rr .d. ftte eour �of fsx . P� r _1 err�tlt th�r tor'� � in alltNins the 4tt~dt::ctton t �ere t �.� ( In h . J':ffl nt eaaeEa ~t.!tiori~>r 4!: tsot n:r~~ t teceif'ts to sup'Port tae cont�st :r&"Pr�- - ntati on $Xll�tt�~ � lf , . as ftfle b:1 tb Sl.ll'rf!me Co t � a clat . tor tt~'J):t~e~n.t~t1Qft �lt. � ne$ deduct� ton ae~ upon t c .!p iii at d 'tl1 th ott1c�rs () . ll dly ' a:itl tht,!~ u t r ., et a, tb~l"e is mor ~ son to. tr J .et the pre$4U'lt olai of' tt t1onfi lf.htcb tu not ~v~n ev1de1tced b,- En:ty r ee1pt �.) ( 'Jl note that tn :tt$ ft~t$ to tne~e rcp~s�!>otl'ltio.n tutpens a& n ddlttonal compen$ettona ~uat :u~ lart�.tt and b \lSI' fo.t- whi.eh th$ C�of'tfeer.s) nft d not makt en ee~ou tin to � t1 t:ton ...r . This a$s~.rt1on 1.$ 204

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1; t !o o r r ~r r for 1 tr to � h6 t r1t-y ot t �. h' w r. In ot coun 1, t pt � t"~ at!ll t k n sub ~- by on r o r �� � r .ty th , fi ne al of b. r r ... p y,' :1 e r t1 ou s 1n o tly r ngt n ~t"u t � �1 ( Cons!(! � in � h s c un �5. 00 to p �; t 0 in 11 vin � t th un ace e�tul �f.fQrte e r d to cell c 1 suft1 d o � rr .nt t 11' . 1 0� � oo r! nt a !on 1... _ 206

� 1 17, "'9 . 3 uc 1on 1 1961, � t t d' u � 1 du 0 1 "- t. f 207

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