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    CIR vs. Burroghs, G.R. No. 66653, June 19, 1986

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    Oro Chamber
    Burroughs Limited, a foreign corporation operating in the Philippines, claimed that the 15% profit remittance tax should be calculated based on profits actually remitted abroad rather than total branch profits. The Supreme Court ruled the tax applies to profits remitted, not total profits. It also ruled BIR rulings generally do not apply retroactively, so the 1980 BIR ruling interpreting the tax base, not the 1982 circular, governed Burroughs' 1979 tax payment.

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    CIR vs. Burroghs, G.R. No. 66653, June 19, 1986

    Uploaded by

    Oro Chamber
    127 views1 page
    Burroughs Limited, a foreign corporation operating in the Philippines, claimed that the 15% profit remittance tax should be calculated based on profits actually remitted abroad rather than total branch profits. The Supreme Court ruled the tax applies to profits remitted, not total profits. It also ruled BIR rulings generally do not apply retroactively, so the 1980 BIR ruling interpreting the tax base, not the 1982 circular, governed Burroughs' 1979 tax payment.

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    tax case

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    31. CIR vs. Burroghs, G.R. No. 66653, June 19, 1986

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    Burroughs Limited, a foreign corporation operating in the Philippines, claimed that the 15% profit remittance tax should be calculated based on profits actually remitted abroad rather than total branch profits. The Supreme Court ruled the tax applies to profits remitted, not total profits. It also ruled BIR rulings generally do not apply retroactively, so the 1980 BIR ruling interpreting the tax base, not the 1982 circular, governed Burroughs' 1979 tax payment.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    127 views1 page

    CIR vs. Burroghs, G.R. No. 66653, June 19, 1986

    Uploaded by

    Oro Chamber
    Burroughs Limited, a foreign corporation operating in the Philippines, claimed that the 15% profit remittance tax should be calculated based on profits actually remitted abroad rather than total branch profits. The Supreme Court ruled the tax applies to profits remitted, not total profits. It also ruled BIR rulings generally do not apply retroactively, so the 1980 BIR ruling interpreting the tax base, not the 1982 circular, governed Burroughs' 1979 tax payment.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    CIR vs. Burroghs, G.R. No.

    66653, June 19, 1986

    Facts:
    Burroughs Limited is a foreign corporation authorized to engage in trade or business in the
    Philippines claimed that the 15% profit remittance tax should have been computed on the
    basis of the amount actually remitted and not on the amount before profit remittance tax.
    Private a written claim for the refund or tax credit of the amount representing alleged
    overpaid branch profit remittance tax.

    Issue:
    1. Whether or not Burroughs is entitled to any tax credit.
    2. Whether or not Memorandum Circular No. 8-82 should be given a retroactive effect?

    Ruling:
    YES. The 15% tax on branch profits remitted abroad applies to the profit actually remitted,
    not the amount applied for remittance.—We rule in the affirmative. In a BIR ruling dated
    January 21, 1980 Sec.24 had been interpreted to mean that “the tax base upon which the
    15% branch profit remittance tax shall be imposed (is) the profit actually remitted abroad
    and not on the total branch profits out of which the remittance is to be made.”

    NO. B.I.R rulings cannot, as a rule, be given retroactive effect-Exceptions.—What is


    applicable in the case at bar is still the Revenue Ruling of January 21, 1980 because private
    respondent Burroughs Limited paid the branch profit remittance tax in question on March
    14, 1979. Memorandum Circular No. 8-82 dated March 17, 1982 cannot be given
    retroactive effect in the light of Section 327 of the National Internal Revenue Code.

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