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CA and
CIR, G.R. No. 103092, G.R. No. 103106
July 21, 1994
FACTS: Bank of America (BOA) is foreign
corporation duly licensed to engage in
business in the Philippines.
On July 20, 1982, BOA paid 15%
branch profit remittance tax in the
amount of P7,538,460.72 on profit from
its regular banking unit operations and
P445,790.25 on profit from its foreign
currency deposit unit operations or a
total of P7,984,250.97. The tax was
based on net profits after income tax
without
deducting
the
amount
corresponding to the 15% tax.
BOA filed a claim for refund with
the BIR of that portion of the payment
which corresponds to the 15% branch
profit remittance tax, on the ground that
the tax should have been computed on
the basis of profits actually remitted,
which is P45,244,088.85, and not on the
amount before profit remittance tax,
which is P53,228,339.82.
Without
awaiting
respondent's
decision, petitioner filed a petition for
review on June 14, 1984 with this
Honorable Court for the recovery of the
amount of P1,041,424.03.
CIR contended that in computing
the 15% remittance tax, the tax should
be inclusive of the sum deemed remitted.
The Court of Tax Appeals (CTA)
upheld petitioners claim for refund.
Court of Appeals set aside the
decision of the Court of Tax Appeals on
Sept. 19, 1990.
Hence, these petitions for review.
ISSUE: WON the 15% branch profit
remittance tax should be assessed on the
amount actually remitted abroad.