Subic importers lose final tax battle over used cars
THE Supreme Court has rejected a bid by importers of used vehicles in the Subic special economic zone to have the taxes imposed on them declared as unconstitutional.
The court’s First Division upheld a Court of Appeals ruling in March 2004 saying the Olongapo court, which granted a petition by car importers, had no jurisdiction over tax cases.
In 2003, Asia International Auctioneers Inc. and Subic Bay Motors Corp. asked an Olongapo City court to stop Internal Revenue from imposing taxes on the cars imported through the Subic Free Port Zone.
The Olongapo court granted the companies’ request for a preliminary injunction in August 2003, leading tax authorities to bring the case to the appeals court.
On March 31, 2004, the appellate court agreed with the tax authorities, saying the Olongapo court had no jurisdiction over the case.
The importers took their case to the Supreme Court, but the justices affirmed the appeals court’s decision, saying the Court of Tax Appeals had exclusive jurisdiction over cases involving tax assessments and refunds. Rey E. Requejo - Manila Standard Today
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SC junks suit vs BIR by used car importers
Rey G. Panaligan - Manila Bulletin
The Supreme Court (SC) has dismissed on a technicality the petition filed by importers of second hand motor vehicles in Subic Special Economic Zone to declare unconstitutional the circulars issued by the Bureau of Internal Revenue (BIR) which impose taxes on imported vehicles brought out of the zone.
In a decision written by Chief Justice Reynato S. Puno, the SC said that the Court of Appeals (CA) did not commit any error in declaring that the Olongapo City regional trial court (RTC) has no jurisdiction over the case filed by the Asia International Auctioneers, Inc. (AIAI) and the Subic Bay Motors Corp. (SBMC).
The SC said AIAI and SBMC should have filed their case with the Court of Tax Appeals (CTA) instead of lodging their complaint with the RTC since the tax court, under Republic Act No. 1125, has exclusive jurisdiction over BIR decisions on cases involving disputed assessments, refunds of taxes, and fees.
"Petitioners’ (AIAI and SBMC) failure to ask the CIR (Commissioner of Internal Revenue) for a reconsideration of the assailed revenue regulations and revenue memorandum circulars is another reason why the instant case should be dismissed. It is settled that the premature invocation of the court’s intervention is fatal to one’s cause of action," the SC stressed.
The two companies asked the Olongapo City RTC to stop former BIR Commissioner Guillermo Parayno from implementing Revenue Memorandum Circulars No. 31-2003 dated June 3, 2003 and No. 32-2003 dated June 5, 2003 (Uniform Guidelines on the Taxation of Imported Motor Vehicles through the Subic Free Port Zone and other Freeport Zones) for being unconstitutional.
They asked the trial court to issue a temporary restraining order (TRO) and preliminary injunction to enjoin the BIR from implementing the circulars.
Specifically, the AIAI and SBMC questioned the provision in the circulars that impose taxes on imported vehicles brought out of the Freeport and sold.
The court’s First Division upheld a Court of Appeals ruling in March 2004 saying the Olongapo court, which granted a petition by car importers, had no jurisdiction over tax cases.
In 2003, Asia International Auctioneers Inc. and Subic Bay Motors Corp. asked an Olongapo City court to stop Internal Revenue from imposing taxes on the cars imported through the Subic Free Port Zone.
The Olongapo court granted the companies’ request for a preliminary injunction in August 2003, leading tax authorities to bring the case to the appeals court.
On March 31, 2004, the appellate court agreed with the tax authorities, saying the Olongapo court had no jurisdiction over the case.
The importers took their case to the Supreme Court, but the justices affirmed the appeals court’s decision, saying the Court of Tax Appeals had exclusive jurisdiction over cases involving tax assessments and refunds. Rey E. Requejo - Manila Standard Today
= = = = =
SC junks suit vs BIR by used car importers
Rey G. Panaligan - Manila Bulletin
The Supreme Court (SC) has dismissed on a technicality the petition filed by importers of second hand motor vehicles in Subic Special Economic Zone to declare unconstitutional the circulars issued by the Bureau of Internal Revenue (BIR) which impose taxes on imported vehicles brought out of the zone.
In a decision written by Chief Justice Reynato S. Puno, the SC said that the Court of Appeals (CA) did not commit any error in declaring that the Olongapo City regional trial court (RTC) has no jurisdiction over the case filed by the Asia International Auctioneers, Inc. (AIAI) and the Subic Bay Motors Corp. (SBMC).
The SC said AIAI and SBMC should have filed their case with the Court of Tax Appeals (CTA) instead of lodging their complaint with the RTC since the tax court, under Republic Act No. 1125, has exclusive jurisdiction over BIR decisions on cases involving disputed assessments, refunds of taxes, and fees.
"Petitioners’ (AIAI and SBMC) failure to ask the CIR (Commissioner of Internal Revenue) for a reconsideration of the assailed revenue regulations and revenue memorandum circulars is another reason why the instant case should be dismissed. It is settled that the premature invocation of the court’s intervention is fatal to one’s cause of action," the SC stressed.
The two companies asked the Olongapo City RTC to stop former BIR Commissioner Guillermo Parayno from implementing Revenue Memorandum Circulars No. 31-2003 dated June 3, 2003 and No. 32-2003 dated June 5, 2003 (Uniform Guidelines on the Taxation of Imported Motor Vehicles through the Subic Free Port Zone and other Freeport Zones) for being unconstitutional.
They asked the trial court to issue a temporary restraining order (TRO) and preliminary injunction to enjoin the BIR from implementing the circulars.
Specifically, the AIAI and SBMC questioned the provision in the circulars that impose taxes on imported vehicles brought out of the Freeport and sold.
Labels: olongapo, smuggling, subic, supreme court, used vehicle
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