73 Commissioner vs BOAC
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Commissioner vs BOAC 149 SCRA 395 Facts: British overseas airways corp. (BOAC a who!!y owne" British Corporation# is en$a$e" in internationa! air!ines %&siness. From 1959to 19' # it has no !oa"in$ ri$hts )or tra*c p&rposes in the +hi!ippines %&t maintaine" a $enera! sa!es a$ent in the +hi!ippines which was responsi%!e )or se!!in$# BOAC tic,ets coverin$ passen$ers an" car$oes the C-R assesse" "e ciency income ta/es a$ainst. -ss&e: -s BOAC !ia%!e to pay ta/es0 R&!in$: es. 2he so&rce o) income is the property# activity o) service that pro"&ces the income. For the so&rce o) income to %e consi"ere" comin$ )rom the +hi!ippines# it is s&*cient that the income is "erive" )rom the activity comin$ )rom the +hi!ippines. 2he ta/ co"e provi"es that )or reven&e to %e ta/a%!e# it m&st constit&te income )rom +hi!ippine so&rces. -n this case# the sa!e o) tic,ets is the so&rce o) income. 2he sit&s o) the so&rce o payments is the +hi!ippines.
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Commissioner vs BOAC
Transcript of 73 Commissioner vs BOAC
Commissioner vs BOAC
149 SCRA 395
Facts:
British overseas airways corp. (BOAC) a wholly owned British Corporation, is engaged in international airlines business. From 1959to 1972, it has no loading rights for traffic purposes in the Philippines but maintained a general sales agent in the Philippines which was responsible for selling, BOACtickets covering passengers and cargoes the CIR assessed deficiency income taxes against.
Issue: Is BOAC liable to pay taxes?
Ruling:
Yes. The source of income is the property, activity of service that produces the income. For the source of income to be considered coming from the Philippines, it is sufficient that the income is derived from the activity coming from the Philippines. The tax code provides that for revenue to be taxable, it must constitute income from Philippine sources. In this case, the sale of tickets is the source of income. The situs of the source of payments is the Philippines.
