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Cargill Philippines vs. CIR

CARGILL PHILIPPINES, INC., PETITIONER, VS. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.

G.R. No. 203346 | 2020-09-09

THIRD DIVISION
 
D E C I S I O N
 
LEONEN, J.:
 
Two conditions must be met for the most favored nation clause to apply: (1) similarity in subject matter, i.e. that royalties derived from the Philippines by a resident of the United States and of the third state are of the same kind;[1] and (2) similarity in circumstances in the payment of tax, i.e. the same mechanism must be employed by the United States and the third state in mitigating the effects of double taxation.[2] Failure to meet these conditions means the clause cannot apply.
 
This Court resolves a Petition for Review on Certiorari[3]...