Case Digest (G.R. No. 17518)
Facts:
Frederick C. Fisher v. Wenceslao Trinidad, G.R. No. 17518, October 30, 1922, the Supreme Court En Banc, Johnson, J., writing for the Court. The plaintiff-appellant Frederick C. Fisher sued the defendant-appellee Wenceslao Trinidad, Collector of Internal Revenue, to recover P889.91 paid under protest as income tax on a stock dividend.
The facts were admitted on demurrer. In 1919 the Philippine American Drug Company, a corporation doing business in Manila, declared a stock dividend. Fisher, a shareholder, was allotted stock dividends having a proportionate face/nominal amount of P24,800. On demand of the Collector, Fisher paid P889.91 as income tax on that stock dividend and then sued to recover the amount. The Collector demurred to Fisher’s petition for want of a cause of action; the trial court sustained the demurrer and dismissed the action. Fisher appealed.
On appeal the principal legal question presented was whether the "stock dividends" in this case were "income" taxable under Section 25 of Act No. 2833 (the Philippine Income Tax Law). The parties and the Court below invoked and contrasted United States and state precedent (notably Towne v. Eisner, Doyle v. Mitchell Bros. Co., Eisner v. Macomber, DeKoven v. Alsop) and compared the wording of the U.S. Income Tax statute (Act of Sept. 8, 1916, ch. 463) with Section 25 of Act No. 2833. The case was decided by the Supreme Court on app...(Pro-only)
Issues:
- Are the stock dividends received by the appellant taxable as "income" under Section 25 of Act No. 2833?...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)