Case Summary (G.R. No. L-12991)
Background Facts
On September 17, 1950, the S/S President Wilson imported a Mercury automobile, which was consigned to Hamlin. The automobile arrived in Cebu on September 21, 1950, via the F/S Albert. Hamlin subsequently took possession of the vehicle from the customs authority on September 23, 1950, after remitting a compensating tax amounting to P927.95, calculated at a rate of 15% of the automobile’s total value, as substantiated by an official receipt dated September 22, 1950.
Legal Framework and Tax Imposition
The pivotal legal framework in this case is anchored on Republic Act 588, which amended the compensating tax to 50% effective from September 22, 1950. In 1954, the Collector of Internal Revenue sought to impose a deficiency tax of P2,164.31, arguing that the applicable tax rate at the time of withdrawal (September 23, 1950) was indeed 50%, as the tax liability was triggered upon the removal of the automobile from customs custody.
Petitioner’s Arguments
Hamlin contended that he should only be liable for the 15% rate, asserting that the tax payment was made on September 21, 1950, despite the date on the receipt reflecting September 22, 1950. His arguments were supported by testimonies from employees who purportedly corroborated his claim regarding the payment date.
Court's Findings and Reasoning
The Court of Tax Appeals rejected Hamlin’s assertions, emphasizing the legal stipulation in Section 190 of the Tax Code, which necessitated the tax to be paid upon the withdrawal or removal of goods from customs custody. The Court determined that since the removal of the automobile occurred on September 23, 1950, the tax due was correctly calculated at the prevailing rate of 50%. The Tax Court found the testimonies presented by Hamlin to be unconvincing and aligned with the documentation that indicated the tax was paid on September 22, 1950.
Conclusion of the Court
The High Court upheld the findings of t
...continue readingCase Syllabus (G.R. No. L-12991)
Case Overview
- This case involves an appeal by F. F. Hamlin against the Collector of Internal Revenue regarding the imposition of a deficiency compensating tax.
- The decision was rendered by Justice Bengzon on December 23, 1959, affirming the ruling of the Court of Tax Appeals.
Background of the Case
- F. F. Hamlin is an American resident of Cebu City, who imported a Mercury automobile on September 17, 1950.
- The car was transhipped to Cebu and arrived on September 21, 1950, aboard the F/S Albert.
- Hamlin paid a compensating tax of P927.95 at a rate of 15% on September 23, 1950, as evidenced by an official receipt dated September 22, 1950.
Changes in Tax Regulation
- Republic Act 588, effective September 22, 1950, increased the compensating tax rate from 15% to 50%.
- In 1954, the Collector of Internal Revenue demanded a deficiency tax payment of P2,164.31 from Hamlin, citing the new rate.
Arguments Presented by Hamlin
- Hamlin contended that:
- He had actually paid the tax on September 21, 1950, despite the receipt indicating September 22 due to accounting practices.
- He should only be liable for the 15% tax rate as he believed the tax should be computed based on the date of actual payment.