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C. Perez Rubio Vs. Collector Of Internal Revenue 054 Phil 256

C. PEREZ RUBIO, plaintiff-appellee, vs. COLLECTOR OF INTERNAL REVENUE, defendant-appellant.

G.R. No. 30855 | 1930-01-20

D E C I S I O N


MALCOLM, J.:

Uncomplicated by questions of fact, the appeal in this case again submits for decision the legal question of whether a stock dividend may be lawfully be taxed as income of the stockholder.
The original Income Tax Law of the Philippines was the Revenue Act of September 18, 1916, which was expressly extended to the Philippines by the Congress of the United States (12 Public Laws, pp. 251 et seq.). In section 2 (a) of this law, it was provided that the term "dividends" shall be held to mean "any distribution made or ordered to be made by a corporation, joint-stock company, association, or insurance company, out...