Professional Documents
Culture Documents
CIR Vs PNB (GR No. 195147, 2016) - Taxation Law Digest
CIR Vs PNB (GR No. 195147, 2016) - Taxation Law Digest
CIR Vs PNB (GR No. 195147, 2016) - Taxation Law Digest
GENERAL PRINCIPLES
Facts:
The PNB disputed the deficiency assessment and filed a protest for the
documentary stamp taxes rising from interbank call loans and special savings
account alleging that these are taxable under the NIRC of 1997. The CTA rendered a
decision stating that the deficiency for documentary stamp taxes for the special
savings account is to be paid while it cancelled the deficiency from the Interbank Call
Loans. The CTA En Banc affirmed the said decision.
Issue:
Whether the interbank call loans are subject to documentary stamp taxes as
considered as a deposit substitute debt
Ruling:
No. The interbank call loans are not subject to tax. For the taxable year 1997, the
applicable law was the NIRC of 1977, as amended by PD No. 1959 and RA No.
7660. However, the five-day maturity of interbank call loans which are taxable, was
only introduced by the NIRC of 1997.
The provisions of the NIRC cannot be given retrospective effect because tax
laws are prospective in application, unless their retroactive application is expressly
provided.