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833
ation‰ in the sense that the word is used under Section 311 of the
Tax Code.
Same; Same; Collection of interest and surcharge for delay in
payment of tax mandatory.·Section 119, paragraph (b)(1) and (c) of
the Tax Code does not confer on the Commissioner of Internal
Revenue or on the courts any power and discretion not to impose
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„In resume, we are of the opinion, that (1) the donorÊs gift tax in the
sum of P34,371.76 was erroneously assessed and collected, hence,
petitioners are entitled to the refund thereof; (2) the doneesÊ gift
taxes were correctly assessed; (3) the im-
837
838
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covered by Section 119 (b) (1) and (c) and Section 120 of the
Tax Code:
„(b) Deficiency.
842
„It has been the uniform holding of this Court that no suit for
enjoining the collection of a tax, disputed or undisputed, can be
brought, the remedy being to pay the tax first, formerly under
protest and now without need of protest, file the claim with the
Collector, and if he denies it, bring an action for recovery against
him.‰ (David v. Ramos, et al., 90 Phil. 351)
„Section 306 of the National Internal Revenue Code xxx lays
down the procedure to be followed in those cases wherein a
taxpayer entertains some doubt about the correctness of a tax
sought to be collected. Said section provides that the tax should first
be paid and the taxpayer should sue for its recovery afterwards. The
purpose of the law obviously is to prevent delay in the collection of
taxes upon which the Government depends for its existence. To
allow a taxpayer to first secure a ruling as regards the validity of
the tax before paying it would be to defeat this purpose.‰ (National
Dental Supply Co. vs. Meer, 90 Phil. 265)
Petitioners did not file in the lower court any motion for the
suspension of payment or collection of the amount of
assessment made against them.
On the basis of the above-stated provisions of law and
applicable authorities, it is evident that the imposition of
1% interest monthly and 5% surcharge is justified and
legal. As succinctly stated by the court below, said
imposition is „mandatory and may not be waived by the
Commissioner of Internal Revenue or by the courts‰
(Resolution on petitionersÊ motion for reconsideration,
Annex XIV, petition). Hence, said imposition of interest and
surcharge by the lower court should be upheld.
WHEREFORE, the decision of the Court of Tax Appeals
is affirmed. Costs against petitioners Pirovano.
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Decision affirmed.
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843
ANNOTATION
COURT OF TAX APPEALS
I. Composition; designation.
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termine and not for the regular courts of justice. Nor can a
case be placed beyond the jurisdiction of the Court simply
because certain consequential or moral damages are
demanded, for they are but incidental to the main case.
This can be passed upon by that Court if and when the
evidence so warrants. (Blaquera vs. Rodriguez, 103 Phil.
335).
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850
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