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CIR V Leal

The CIR issued two rulings imposing a 5% lending investors tax on pawnshops based on gross income and subjecting pawn tickets to documentary stamp tax. Josefina Leal, a pawnshop owner, sought reconsideration which was denied. She filed a petition for prohibition with the RTC. The CIR argued the case fell under the CTA's exclusive appellate jurisdiction. The court ruled BIR rulings adversely affecting taxpayers are appealable to the CTA per the law creating the CTA to review CIR decisions on disputed assessments and other tax matters.

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Roxanne Avila
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73 views1 page

CIR V Leal

The CIR issued two rulings imposing a 5% lending investors tax on pawnshops based on gross income and subjecting pawn tickets to documentary stamp tax. Josefina Leal, a pawnshop owner, sought reconsideration which was denied. She filed a petition for prohibition with the RTC. The CIR argued the case fell under the CTA's exclusive appellate jurisdiction. The court ruled BIR rulings adversely affecting taxpayers are appealable to the CTA per the law creating the CTA to review CIR decisions on disputed assessments and other tax matters.

Uploaded by

Roxanne Avila
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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TAX2.8 CIR v.

Leal
FACTS: The CIR issued Revenue Memorandum Order(RMO) No. 15-91 imposing 5% lending investors tax on
pawnshops based on their gross income and Revenue Memorandum Circular (RMC) No. 43-91 subjecting the pawn ticket
to the documentary stamp tax as prescribed in Title VII of the Tax Code.
Josefina Leal, owner and operator of a pawnshop, being adversely affected, asked for a reconsideration of both
but the same was denied with finality by CIR in its BIR Ruling. So, she filed with the RTC a petition for prohibition. CIR
opposed contending that the case falls within the exclusive appellate jurisdiction of the Court of Tax Appeals.

ISSUE: WON a BIR Ruling made by the CIR adversely affecting a taxpayer is appealable to the CTA.

RULING: Yes. The questioned RMO No. 15-91 and RMC No. 43-91 are actually rulings or opinions of the
Commissioner implementing the Tax Code on the taxability of pawnshops. Such rulings of the Commissioner of Internal
Revenue are appealable to the CTA as provided for by Sec 7 (1) Republic Act No. 1125 (An Act Creating the Court of Tax
Appeals).
“The Court of Tax Appeals shall exercise exclusive appellate jurisdiction to review by appeal xxx Decisions of the
Commissioner of Internal Revenue in cases involving disputed assessments, refunds xxx or other matters arising under the
National Internal Revenue Code or other laws or part of law administered by the Bureau of Internal Revenue.

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