G.R. No. 215801 - Bureau of Internal Revenue vs. 1st E-Bank Tower Condominium Corp.

Issued October 31, 2012, titled “Clarifying the Taxability of Association Dues, Membership Fees and Other Assessments/Charges Collected by Condominium Corporations.”
Provides that dues, fees and assessments of condominium corporations are (a) subject to income tax as “gross income,” (b) subject to 12% VAT as sales of services in the course of trade or business, and (c) subject to applicable withholding taxes.

First E-Bank Tower Condominium Corp. filed a petition for declaratory relief in RTC Makati to invalidate RMC No. 65-2012, alleging it is oppressive, confiscatory and beyond BIR’s power.
BIR and Revenue District Officer moved to dismiss for prematurity and lack of primary jurisdiction over declaratory relief.
By Resolution (Sept. 5, 2013), RTC declared RMC No. 65-2012 invalid for expanding the law, imposing new taxes without due process, and departing from prior BIR rulings.
Court of Appeals dismissed both First E-Bank’s and BIR’s appeals (June 26, 2014; Nov. 27, 2014) for lack of jurisdiction, holding that the Court of Tax Appeals (CTA) has exclusive appellate jurisdiction over tax cases.
First E-Bank filed a Special Civil Action for Certiorari (G.R. No. 218924) and BIR filed a Petition for Review under Rule 45 (G.R. No. 215801) before the Supreme Court.

Is a petition for declaratory relief the proper remedy to invalidate RMC No. 65-2012?
Did the Court of Appeals validly dismiss the appeals for lack of jurisdiction?
Is RMC No. 65-2012 valid?

Is a condominium corporation engaged in trade or business under the Tax Code?
Are association dues, membership fees and assessments subject to income tax, VAT and withholding tax?