Decision
Revenue v. Phoenix Assurance Co
G.R. No. L-19903 · 1965-05-20 · J.P, J. · LawPhil
THE COMMISSIONER OF INTERNAL REVENUE, petitioner, vs. PHOENIX ASSURANCE CO., LTD., respondent. G.R. No. L-19903 May 20, 1965 PHOENIX ASSURANCE, CO., LTD., petitioner, vs. COMMISSIONER OF INTERNAL REVENUE, respondent. Office of the Solicitor General for petitioner-respondent Commissioner of Internal…
J.P., J.:
From a judgment of the Court of Tax Appeals in C.T.A. Cases Nos. 305 and 543, consolidated and jointly heard therein, these two appeals were taken. Since they involve the same facts and interrelated issues, the appeals are herein decided together. Phoenix Assurance Co., Ltd., a foreign insurance corporation organized under the laws of Great Britain, is licensed to do business in the Philippines with head office in London.
Through its head office, it entered in London into worldwide reinsurance treaties with various foreign insurance companies. It agree to cede a portion of premiums received on original insurances underwritten by its head office, subsidiaries, and branch offices throughout the world, in consideration for assumption by the foreign insurance companies of an equivalent portion of the liability from such original insurances.1äwphï1.ñët Pursuant to such reinsurance treaties, Phoenix Assurance Co., Ltd., ceded portions of the premiums it earned from its underwriting business in the Philippines, as follows: Year Amount Ceded 1952 P316,526.75 1953 P246,082.04 1954 P203,384.69 upon which the Commissioner of Internal Revenue, by letter of May 6, 1958, assessed the following withholding tax: Year Withholding Tax 1952 P 75,966.42 1953 59,059.68 1954 48,812.32 Total