Everett v. Bautista

DIAZ, J.:

The question raised by the appeal of the defendants and appellants from the order of the Court of First Instance of Manila, dated June 8, 1938 and rendered in civil case No. 50972 of said court, directing the payment of the sum of P992.59 by the partnership Everett-Bautista to the Commonwealth of the Philippines, as percentage tax on the gross receipts of the cinematograph business of said partnership at the "Queen's Theater" during the first quarter of the year, is whether the collection of said tax is in accordance with law. The facts which must be taken into account and are not disputed by the parties, are the following: The partnership Everett-Bautista, which is formed by Harrie S. Everett and by the appellant Federico T. Bautista and which is now in liquidation, was the owner or, at least, it directed and managed the cinematograph business called "Quee's Theater,"

during the first quarter of 1937. Its gross receipts during that period were P15,881.41. The admission fees which had been collected were not at the same rate, because at times less than P0.40 per seat was charged, while at other times more than P0.40 but not exceeding P0.70 per seat were charged.

Since it did not pay in due time the tax fixed by law, which is 5 per cent of the receipts, the Collector of Internal Revenue required it to pay the sum of P992.59, which represents the following items and amounts: Five per cent of P15,881.41 which were its gross receipts during the first quarter of 1937, as tax ............................. P794.07 Twenty-five per cent surcharge on P794.70 for delay in payment of this tax ............................................................ 198.52 Total ...............................................................