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Bank of America NT & SA vs. CA, et al.

BANK OF AMERICA NT & SA, petitioner, vs. HONORABLE COURT OF APPEALS, AND THE COMMISSIONER OF INTERNAL REVENUE, respondents

G.R. No. 103092 | 1994-07-21

D E C I S I O N

VITUG, J p:

Section 24 (b) (2) (ii) of the National Internal Revenue Code, in the language it was worded in 1982 (the taxable period relevant to the case at bench), provided, in part, thusly:

"Sec. 24. Rates of tax on corporations. . . .

"(b) Tax on foreign corporations. . . .

"(2) (ii) Tax on branch profit and remittances. -

"Any profit remitted abroad by a branch to its head office shall be subject to a tax of fifteen per cent (15%) . . . ."

Petitioner Bank of America NT & SA argues that the 15% branch profit remittance tax on the basis of the above provision should be assessed on the amount actually remitted...