G.R. No. 108576 - COMMISSIONER OF INTERNAL REVENUE, VS. THE COURT OF APPEALS, COURT OF TAX APPEALS AND A. SORIANO CORP..D E C I S I O N - Supreme Court E-Library

Ruling

Accordingly, it was the duty of ANSCOR to withhold the tax-at-source arising from the two transactions, pursuant to Section 53 and 54 of the 1939 Revenue Act. [39] ANSCOR, however, avers that it has no duty to withhold any tax either from the Don Andres estate or from Doña Carmen based on the two transactions, because the same were done for legitimate business purposes which are (a) to reduce its foreign exchange remittances in the event the company would declare cash dividends, [40] and to (b) subsequently filipinized ownership of ANSCOR, as allegedly envisioned by Don Andres. [41] It likewise invoked the amnesty provisions of P.D. 67. We must emphasize that the application of Sec. 83(b) depends on the special factual circumstances of each case. [42] The findings of facts of a special court (CTA) exercising particular expertise on the subject of tax, generally binds this Court, [43] considering that it is substantially similar to the findings of the CA which is the final arbiter of questions of facts. [44] The issue in this case does not only deal with facts but whether the law applies to a particular set of facts. Moreover, this Court is not necessarily bound by the lower courts conclusions of law drawn from such facts. [45] AMNESTY: We will deal first with the issue of tax amnesty. Section 1 of P.D. 67 [46] provides: I. In all cases of voluntary disclosures of previously untaxed income and/or wealth such as earnings, receipts, gifts, bequests or any other acquisitions from any source whatsoever which are taxable under the National Internal Revenue Code, as amended, realized here or abroad by any taxpayer , natural or juridical; the collection of all internal revenue taxes including the increments or penalties or account of non-payment as well as all civil, criminal or administrative liabilities arising from or incident to such disclosures under the National Internal Revenue Code, the Revised Penal Code, the Anti-Graft and Corrupt Practices Act, the Revised Administrative Code, the Civil Service laws and regulations, laws and regulations on Immigration and Deportation, or any other applicable law or proclamation, are hereby condoned and, in lieu thereof, a tax of ten (10%) per centum on such previously untaxed income or wealth is hereby imposed, subject to the following conditions: (conditions omitted) [Emphasis supplied]. The decree condones the collection of all internal revenue taxes including the increments or penalties or account of non-payment as well as all civil, criminal or administrative liabilities arising from or incident to (voluntary) disclosures under the NIRC of previously untaxed income and/or wealth realized here or abroad by any taxpayer, natural or juridical. May the withholding agent, in such capacity, be deemed a taxpayer for it to avail of the amnesty? An income taxpayer covers all persons who derive taxable income. [47] ANSCOR was assessed by petitioner for deficiency withholding tax under Section 53 and 54 of th