CIR v Tokyo Shipping Co. LTD.
GR No L-68252, May 26, 1995
FACTS:
Tokyo Shipping filed a claim for refund from the BIR for erroneous prepayment of income and common carrier’s taxes amounting to P107,142.75 since no receipt was realized from its charter agreement. BIR failed to act promptly on the claim and thus it was elevated to the Court of Tax Appeals which decided in favor of the refund. Hence, this petition for review on certiorari.
ISSUE:
Whether Tokyo Shipping is entitled to a refund or tax credit for the prepayment of taxes
RULING:
Yes. The power of taxation is sometimes called also the power to destroy. Therefore, it should be exercised with caution to minimize injury to the proprietary rights of a taxpayer. It must be exercised fairly, equally and uniformly, lest the tax collector kill the “hen that lays the golden egg”. Fair deal is expected by taxpayers from the BIR and the duty demands that BIR should refund without unreasonable delay the erroneous collection.
FACTS:
Tokyo Shipping filed a claim for refund from the BIR for erroneous prepayment of income and common carrier’s taxes amounting to P107,142.75 since no receipt was realized from its charter agreement. BIR failed to act promptly on the claim and thus it was elevated to the Court of Tax Appeals which decided in favor of the refund. Hence, this petition for review on certiorari.
ISSUE:
Whether Tokyo Shipping is entitled to a refund or tax credit for the prepayment of taxes
RULING:
Yes. The power of taxation is sometimes called also the power to destroy. Therefore, it should be exercised with caution to minimize injury to the proprietary rights of a taxpayer. It must be exercised fairly, equally and uniformly, lest the tax collector kill the “hen that lays the golden egg”. Fair deal is expected by taxpayers from the BIR and the duty demands that BIR should refund without unreasonable delay the erroneous collection.
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