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Citibank vs. Court Of Appeals, et al.

CITIBANK, N.A., petitioner vs. COURT OF APPEALS and COMMISSIONER OF INTERNAL REVENUE, respondents.

G.R. No. 107434 | 1997-10-10

D E C I S I O N

PANGANIBAN, J:

The law requires a lessee to withhold and remit to the Bureau of Internal Revenue (BIR) five percent (5%) of the rental due the lessor, by way of advance payment of the latter's income tax liability. Is the lessor entitled to a refund of such withheld amount after it is determined that the lessor was not, in fact, liable for any income tax at all because its annual operation resulted in a net loss as shown in its income tax return filed at the end of the taxable year?

This is the question raised in this petition for review on certiorari of the Court of Appeals 1 Decision 2 promulgated on May 27, 1992 and...