Commissioner of Internal Revenue vs. Central Luzon Drug Corporation 456 SCRA 413

COMMISSIONER OF INTERNAL REVENUE, Petitioner, versus CENTRAL LUZON DRUG CORPORATION, Respondent.

G.R. No. 159647 | 2005-04-15

Discount
Cash discount
Quantity discount
Volume discount
Bulk discount
Trade discount
Functional discount
Tax Credit and Tax Deduction, distinguished
20 Percent Senior Citizen Discount; covered sales, as tax deduction, and exercise of eminent domain

D E C I S I O N

PANGANIBAN, J.:

The 20 percent discount required by the law to be given to senior citizens is a tax credit, not merely a tax deduction from the gross income or gross sale of the establishment concerned. A tax credit is used by a private establishment only after the tax has been computed; a tax deduction, before the tax is computed. RA 7432 unconditionally grants a tax credit to all covered entities. Thus, the provisions of the revenue regulation that withdraw or modify such grant are void. Basic is the rule that administrative regulations cannot amend or revoke the law.

The Case

Before us is a Petition for Review[1] under...