April 2013 Philippine Supreme Court Decisions on Tax Law

Here are select April 2013 rulings of the Supreme Court of the Philippines on tax law:

National Internal Revenue Code; Revenue Regulations No. 12-86; withholding taxes; imposition thereof dependent upon the nature of work performed. For taxation purposes, a director is considered an employee under Section 5 of Revenue Regulations No. 12-86.  An individual performing services for a corporation, whether as an officer and director or merely as a director whose duties are confined to attendance at and participation in the meetings of the Board of Directors, is an employee. The non-inclusion of the names of some of petitioner’s directors in the company’s Alpha List does not ipso facto create a presumption that they are not employees of the corporation, because the imposition of withholding tax on compensation hinges upon the nature of work performed by such individuals in the company. Revenue Regulations No. 2-98 does not apply to this case as the latter is a later regulation while the accounting books examined were for taxable years 1997. First Lepanto Taisho Insurance Corporation vs. Commissioner of Internal Revenue, G.R. No. 197117. April 10, 2013.

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