Case Digest (G.R. No. L-12928)
Case Digest (G.R. No. L-12928)
Facts:
The Philippines International Fair, Inc. v. The Collector of Internal Revenue, G.R. Nos. L-12928 & L-12932, March 30, 1962, the Supreme Court En Banc, Dizon, J., writing for the Court.The petitioner, The Philippines International Fair, Inc. (PIF), was a domestic stock corporation with the Philippine Government as its principal stockholder (holding some 45–55% of its capital). Its articles of incorporation declared among its purposes the establishment and management of international fairs and expositions. In 1953 PIF operated an International Fair in Manila featuring exposition booths, side shows, an amusement zone (with attractions including the "Aquacade Show" and the "Xavier Cugat Show"), and an auditorium where dances and balls were held; admission fees were charged to the exposition and to particular attractions. In 1954 PIF held a National Fair at the same premises where gate and auditorium entrance fees were likewise charged.
By letters dated April 12, July 20 and June 28, 1954 the Collector of Internal Revenue assessed PIF for amusement tax under Section 260 of the Tax Code on gross receipts from admission tickets (for the exposition and amusement grounds, Aquacade Show, and benefit dances) for specified periods, plus a 25% surcharge and a proposed compromise penalty; total demand was P178,475.59. After the Collector referred the matter to the Conference Staff, the Staff recommended enforcement; notice of the adverse decision reached PIF April 20, 1956. PIF appealed to the Court of Tax Appeals on May 19, 1956; the Court of Tax Appeals rendered its decision on April 29, 1957.
The proceedings yielded two cross-appeals to the Supreme Court. In G.R. No. L-12928 PIF appealed the Court of Tax Appeals’ order requiring payment of amusement tax and surcharge on admissions to the exposition ground and auditorium (March–May 1953) and on benefit dances (April 23–May 9, 1954). In G.R. No. L-12932 the Collector appealed the CTA’s exemption of PIF from amusement tax on Aquacade receipts (February 1953) and the CTA’s refusal to require payment of the claimed compromise penalty (P13,200). The appeals were consolidated and brought under the Court’s ordinary appellate jurisdiction.
Issues:
- Is PIF exempt from the amusement tax on the ground that its fairs were sponsored by or formed part of the activities of the Government?
- Are the receipts from general gate and auditorium admissions and from benefit dances taxable under Section 260 despite some cultural or artistic features within the fairs?
- Does the Aquacade Show fall within the exemption of Republic Act No. 722 (operas, concerts, recitals, dramas, painting and art exhibitions, flower shows, and literary/oratorical/musical programs) as an art exhibition (i.e., a “water ballet”)?
- May the Court (or the Court of Tax Appeals) compel payment of the alleged compromise penalty of P13,200 assessed by the Collector?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)