June 2010 Philippine Supreme Court Decisions on Tax Law

Here are selected June 2010 decisions of the Supreme Court of the Philippines on tax law:

Court of Tax Appeals; factual findings final, binding and conclusive. The factual findings of the Court of Tax Appeals (CTA), a special court exercising expertise on the subject of tax, are generally regarded as final, binding and conclusive upon the Supreme Court, especially if these are substantially similar to the findings of the Court of Appeals (CA) which is normally the final arbiter of questions of fact. Miguel G. Osorio Pension Foundation, Incorporated vs Court of Appeals and Commissioner of Internal Revenue, G.R. No. 162175, June 28, 2010.

Court of Tax Appeals; factual findings final, binding and conclusive; exceptions. Recognized exceptions to the rule that the factual findings are final, binding and conclusive are: (1) when the findings are grounded entirely on speculation, surmises or conjectures; (2) when the inference made is manifestly mistaken, absurd or impossible; (3) when there is grave abuse of discretion; (4) when the judgment is based on misapprehension of facts; (5) when the findings of fact are conflicting; (6) when in makings its findings the CA went beyond the issues of the case; or its findings are contrary to the admissions of both the appellee and the appellant; (7) when the findings are contrary to the trial court; (8) when the findings are conclusions without citation of specific evidence on which they are based; (9) when the facts set forth in the petition as well as in the petitioner’s main and reply briefs are not disputed by the respondent; (10) when the findings of fact are premised on the supposed absence of evidence and contradicted by the evidence on record; or (11) when the CA manifestly overlooked certain relevant facts not disputed by the parties which, if properly considered, would justify a different conclusion. Miguel G. Osorio Pension Foundation, Incorporated vs Court of Appeals and Commissioner of Internal Revenue, G.R. No. 162175, June 28, 2010.

Employees’ trust fund; no estoppel in favor of BIR. An employees’ trust fund is not estopped from proving its ownership over a lot held in trust by, and titled in the name of, another when the purpose is not to contest the disposition or encumbrance of the property in favor of an innocent third-party purchaser for value. The Bureau of Internal Revenue (BIR), not being a buyer or claimant to any interest in the lot, has not relied on the fact of the title of the lot to acquire any interest in it. Thus, there is no basis for the BIR to claim that the trustee of employees’ trust fund is estopped from proving that it co-owns the lot.  Miguel G. Osorio Pension Foundation, Incorporated vs Court of Appeals and Commissioner of Internal Revenue, G.R. No. 162175, June 28, 2010.

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