2. BPI Family Savings BANK v. CA PDF

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No. 2 BPI FAMILY BANK vs. COURT OF APPEALS, COURT OF TAX APPEALS AND COMMISSIONER OF INTERNAL REVENUE G.R. No. 117319 July 19, 2006 Facts: Petitioner affixed and paid the documentary stamps on its confirmations of sale of T-bills and Central Bank bills. The Bureau of Internal Revenue (BIR) issued a memorandum stating among others that no documentary stamp tax shall be imposed on documents of conveyance of instruments enumerated presently in Section 180 of the National Internal Revenue Code (NIRC). Petitioner then filed a claim for refund, alleging among others that T-bills and Central Bank bills fall within the purview of the instruments enumerated in the said provision of the National Internal Revenue Code. Petitioner filed a petition for review with the respondent Court of Tax Appeals, however, the Court of Tax Appeals denied the claim for refund, and also the motion for reconsideration. On appeal, the Court of Appeals ruled that the sale and transfer of T-bills and Central Bank bills are subject to documentary stamp tax under Section 176 of the NIRC. Issue: Whether or not confirmations of sale of the subject government securities, between herein petitioner and private individuals/entities, subject to documentary stamp tax. (YES) Ruling: The Court agrees with the ruling of both the tax and appellate courts that whether T-bills and Central Bank bills are denominated as certificates of obligations, certificates of indebtedness or evidence of indebtedness, they bear the same meaning. Section 225 is clear. On all sales, or agreements to sell, or memoranda of sales, or deliveries, or transfer of certificates of obligation in any association, company, or corporation; or transfer of such securities by delivery, or by any paper, or agreement, or memorandum or other evidences of transfer or sale whether entitling the holder in any manner to the benefit of such certificates of obligation, there shall be collected a documentary stamp tax. These terms bear the same meaning and although their various appellations are used interchangeably by law, they all refer to the subject securities. In addition, rules and regulations issued by the administrative officials to implement a law cannot go beyond the terms and provisions of the latter. Courts will not accept administrative rulings that are not consistent and in harmony with the law they seek to apply and implement. Hence, the confirmations of sale of government securities made by the petitioner to private individuals/entities are subject to documentary stamp tax pursuant to Section 225 of the NIRC. Petition is denied....