South African Airways vs. Commissioner of Internal Revenue Summary

SOUTH AFRICAN AIRWAYS, Petitioner, versus COMMISSIONER OF INTERNAL REVENUE, Respondent

G.R. No. 180356 | 2010-02-16

Taxes cannot be subject to compensation; no off-setting of taxes against the claims that the taxpayer may have against the government
Statutory construction, statements made by lawmakers in the course of congressional deliberations are not controlling in the interpretation of law
Gross Philippine Billings (GPB), place of sale is irrelevant, as long as the uplifts of passengers and cargo occur to or from the Philippines, income is included in GPB
Off-line air carriers having general sales agents in the Philippines are engaged in or doing business in the Philippines and their income from sales of passage documents here is income from within the Philippines
Statutory construction; Statements made by individual members of Congress in the consideration of a bill do not necessarily reflect the sense of that body and are not controlling in the interpretation of law
Offsetting of a tax refund with a tax deficiency

D E C I S I O N

VELASCO, JR., J.:

The Case

This Petition for Review on Certiorari under Rule 45 seeks the reversal of the July 19, 2007 Decision[1] and October 30, 2007 Resolution[2] of the Court of Tax Appeals (CTA) En Banc in CTA E.B. Case No. 210, entitled South African Airways v. Commissioner of Internal Revenue. The assailed decision affirmed the Decision dated May 10, 2006[3] and Resolution dated August 11, 2006[4] rendered by the CTA First Division.

The Facts

Petitioner South African Airways is a foreign corporation organized and existing under and by virtue of the laws of the Republic of South Africa. Its principal office is located at...