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Commissioner of Internal Revenue vs. CityTrust Investment Phils.

COMMISSIONER OF INTERNAL REVENUE, Petitioner, versus CITYTRUST INVESTMENT PHILS., INC., Respondent.

G.R. No. 139786 | 2006-09-27

SECOND DIVISION
 
D E C I S I O N 
 
SANDOVAL-GUTIERREZ, J.: 
 
Does the twenty percent (20%) final withholding tax (FWT) on a bank's passive income[1] form part of the taxable gross receipts for the purpose of computing the five percent (5%) gross receipts tax (GRT)? This is the central issue in the present two (2) consolidated petitions for review. 
 
In G.R. No. 139786, petitioner Commissioner of Internal Revenue (Commissioner) assails the Court of Appeals Decision dated August 17, 1999 in CA-G.R. SP No. 52707[2] affirming the Court of Tax Appeals (CTA) Decision[3] ordering the refund or issuance of tax...