Philacor Credit Corporation vs. Commissioner of Internal Revenue (CIR) Summary

PHILACOR CREDIT CORPORATION, Petitioner, vs. COMMISSIONER OF INTERNAL REVENUE, Respondent.

G.R. No. 169899 | 2013-02-06

Debt restructuring or loan refinancing agreement, payment of DST

Issuances of promissory notes are subject to documentary stamp tax (DST)
Persons primarily liable for the payment of the DST are the persons making, signing, issuing, accepting, or transferring the taxable documents, instruments or papers
Assignment or transfer of promissory notes or other evidence of indebtedness is not subject to documentary stamp tax (DST), it is the renewal of these that is taxable
Documentary stamp tax (DST), persons primarily liable, 'acceptance' applies only to bills of exchange; use technical, not ordinary, meaning of the word
DST liability, act of accepting is not applicable to promissory notes but refers solely to bills of exchange; acceptance not understood in its plain or ordinary meaning
Liability for DST and the amount due are determined from the document itself and cannot be affected by proof of facts outside it

SECOND DIVISION

D E C I S I O N

BRION, J.:

Before us is a petition for review on certiorari¹under Rule 45 of the Rules of Court seeking the reversal of the decision² dated September 23, 2005 of the Court of Tax Appeals (CTA) en banc in C.T.A, E.B. No. 19 (C.T.A. Case No. 5674). In the assailed decision, the CTA en banc affirmed the CTA Division's resolution³ of April 6, 2004. Both courts held that petitioner Philacor Credit Corporation (Philacor), as an assignee of promissory notes, is liable for deficiency documentary stamp tax (DST) on (1) the issuance of promissory notes; and (2) the assignment of promissory notes for the fiscal...