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Commissioner of Internal Revenue vs Bank of Commerce.

COMMISSIONER OF INTERNAL REVENUE, Petitioner, versus BANK OF COMMERCE, Respondent.

G.R. No. 149636 | 2005-06-08

D E C I S I O N 


CALLEJO, SR., J.: 

This is a petition for review on certiorari of the Decision[1] of the Court of Appeals (CA) in CA-G.R. SP No. 52706, affirming the ruling of the Court of Tax Appeals (CTA)[2] in CTA Case No. 5415. 

The facts of the case are undisputed. 

In 1994 and 1995, the respondent Bank of Commerce derived passive income in the form of interests or discounts from its investments in government securities and private commercial papers. On several occasions during the said period, it paid 5% gross receipts tax on its income, as reflected in its quarterly percentage tax returns. Included therein were...