CIR vs Bank of Commerce Short Facts: Bank of Commerce is claiming for refund on the theory that Final Withholding

Taxes are not included in the computation of Gross Receipt Taxes Doctrine Gross Receipt Tax includes The Final Withholding Tax in its computation. The taxes that are imposed are on two different subject matters. The subject matter of the Final Withholding Tax is the passive income generated in the form of interest on deposits and yield on deposit substitutes, while the subject matter of the GRT is the privilege of engaging in the business of banking. Although both taxes are national in scope because they are imposed by the same taxing authority the national government under the Tax Code and operate within the same Philippine jurisdiction for the same purpose of raising revenues, the taxing periods they affect are different. The Final Withholding Tax is deducted and withheld as soon as the income is earned, and is paid after every calendar quarter in which it is earned. On the other hand, the Gross Receipt Tax is neither deducted nor withheld, but is paid only after every taxable quarter in which it is earned. These two taxes are of different kinds or characters. The FWT is an income tax subject to withholding, while the GRT is a percentage tax not subject to withholding. In short, there is no double taxation, because there is no taxing twice, by the same taxing authority, within the same jurisdiction, for the same purpose, in different taxing periods, some of the property in the territory. Subjecting interest income to a 20% FWT and including it in the computation of the 5% GRT is clearly not double taxation. SilkAir vs CIR Short Facts: SilkAir is claiming a refund on the Excise Tax it paid in buying jet fuel from Petron. CIR claims that only petron, as the manufacturer or producer, is allowed to claim the Tax credit or refund. Doctrine: The proper party to question, or seek a refund of an indirect tax is the statutory taxpayer, the person on whom the tax is imposed by law and who paid the same even if he shifts the burden thereof to another. The Court added that even if Petron Corporation passed on to Silkair the burden of the tax, the additional amount billed to Silkair for jet fuel is not a tax but part of the price which Silkair had to pay as a purchaser. An excise tax is an indirect tax where the tax burden can be shifted to the consumer but the tax liability remains with the manufacturer or producer. Only Petron can claim the tax credit. Sec. of Finance vs La Suerte Cigar

Short Facts: La Suerte is assailing Revenue Regulations issued by the BIR giving the BIR the power to reclassify registered cigarette brands and adjust their tax rates. Doctrine the High Court held that BIR Revenue Regulations Nos. 9-2003 and 22-2003 are unconstitutional insofar as these regulations empower the BIR to reclassify registered cigarette brands and adjust their tax rates the Court held the Bureau of Internal Revenue (BIR) devoid of power to review, for purposes of updating tax classifications, the current net retail prices of cigarettes that are already registered. The Court held that the passage by the BIR of Revenue Regulations No. 9-2003 which provides for a periodic review of the current net retail prices of new cigarette and an update of their classification, as well as the subsequent Revenue Regulation No. 22-2003 which implemented the revised tax classification of certain new brands, unjustifiably emasculate the operation of Section 145 of the NIRC because they authorize the Commissioner of Internal Revenue to update the tax classification of new brands every two years or earlier subject only to its issuance of the appropriate Revenue Regulations. The Court stressed that nowhere in the law is such authority granted to the BIR.