afisco
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TaxationTRANSCRIPT
G.R. No. 112675 January 25, 1999AFISCO INSURANCE CORPORATION; xxx, petitioner, vs.COURT OF APPEAS, COURT OF TA! APPEAS an"CO#ISSIONER OF INTERNA RE$ENUE, respondent.PANGANI%AN, J.:Pursuant to"reinsurancetreaties," anumber of local insurancefirmsformedthemselvesintoa"pool" inorder tofacilitatethehandling of business contracted with a nonresident foreigninsurance company. May the "clearing house" or "insurance pool"so formedbe deemeda partnershipor anassociationthat istaxable as a corporation under the National Internal Revenue ode!NIR"# $hould the pool%s remittances to the member companiesandto thesaidforeignfirmbetaxableas dividends#&nderthefacts of this case, has the goverment%s right to assess and collectsaid tax prescribed#The Case'hesearethemain(uestionsraisedinthePetitionfor Reviewon Certiorari before us, assailing the )ctober **, *++, -ecision 1 ofthe ourt of .ppeals 2 in ./0R $P 12+31, which dismissedpetitioners% appeal of the )ctober *+, *++1 -ecision & of the ourtof 'ax .ppeals ' !'." which had previously sustained petitioners%liability for deficiency income tax, interest and withholding tax. 'heourt of .ppeals ruled4567R78)R7, the petition is -I$MI$$7-, with costs againstpetitioner 5'he petitionalso challenges the November *2, *++,ourt of.ppeals !." Resolution 6 denying reconsideration.The Facts'he antecedentfacts, 7 asfound by the ourt of .ppeals, are asfollows4'hepetitionersare9*non/lifeinsurancecorporations,organi:edand existing under the laws of the Philippines. &pon issuance bythemof 7rection, Machinery ;reauota $hare Reinsurance 'reaty and a $urplusReinsurance 'reaty with the Munchener Ruc